1. A. Scope. The deadlines set by §§B—D of this regulation do not apply to a claim for damage that results in the total loss of a motor vehicle if:

   1. (1) There is a good faith dispute as to the obligation of the insurer under the contract; or
   2. (2) There are factors beyond the control of the insurer that prevent the insurer from complying with the deadlines set by §§B—D of this regulation, including a vehicle that is limited in production, specialty in nature, or older than 10 model years at the time of the total loss.

2. B. First-Party Claimants—In General. Except as provided in §C of this regulation, within 10 business days after an insurer determines that a motor vehicle of a first-party claimant is a total loss, the insurer shall:

   1. (1) Make an offer of a cash settlement pursuant to Regulation .04 of this chapter; or
   2. (2) If authorized by the policy, replace the motor vehicle pursuant to Regulation .07 of this chapter.

3. C. First-Party Claimants—Unrecovered Theft Loss. In the case of an unrecovered theft loss of the motor vehicle of a first-party claimant, an insurer shall make an offer for the total loss within the later of:

   1. (1) 30 days after receipt of notification of a claim; or
   2. (2) The time provided in the policy.
4. D. Third-Party Claimants. Within 10 days after an insurer determines that a motor vehicle of a third-party is a total loss, the insurer shall make an offer of a cash settlement pursuant to Regulation .04 of this chapter.

Authority: Insurance Article, §27-304.1, Annotated Code of Maryland

Effective date: July 5, 2004 (31:13 Md. R. 996)

Regulation .01 amended effective March 24, 2008 (35:6 Md. R. 702)