A BILL TO BE ENTITLED
AN ACT to require coverage for diminution in value as a part of motor vehicle Liability insurance property coverage.
The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 20‑279.21 is amended by adding a new subsection to read:
"§ 20‑279.21.  "Motor vehicle liability policy" defined.
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(d1)	Such motor vehicle liability policy shall provide coverage for the diminished value of a motor vehicle after it has been repaired. In case the claimant and the insurer fail to agree as to the diminished value of a motor vehicle after repair, on the written demand of either, each shall select a competent and disinterested appraiser and notify the other of the appraiser selected within 20 days after the demand. The appraisers shall first select a competent and disinterested appraiser to serve as an umpire. If the appraisers cannot agree upon an umpire within 15 days, either the claimant or the insurer may request that a magistrate resident in the county where the insured motor vehicle is registered select the umpire. The appraisers shall then appraise the loss, stating separately the diminished value of the motor vehicle. Should the appraisers fail to agree, they shall submit their differences to the umpire. The umpire shall prepare a report determining the amount of diminished value and file the report with the insurer. The agreement of the two appraisers, or the report of the umpire, when filed with the insurer, shall determine the amount of diminished value. Each appraiser shall be paid by the party selecting him and the expenses of appraisal and umpire shall be paid by the parties equally. For purposes of this section, "appraiser" shall mean a motor vehicle damage appraiser licensed by the Department of Insurance.
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SECTION 2.  G.S. 7A‑292 is amended by adding a new subdivision to read:
"§ 7A‑292.  Additional powers of magistrates.
In addition to the jurisdiction and powers assigned in this Chapter to the magistrate in civil and criminal actions, each magistrate has the following additional powers:
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(15)	To appoint an umpire to determine motor vehicle liability policy diminution in value, as provided in G.S. 20‑279.21(d1)."
SECTION 3.  This act becomes effective October 1, 2009, and applies to motor vehicle liability insurance policies issued or renewed on or after that date.