Bulletin IC-10

December 10, 1992

This Bulletin supplements Bulletin No. IC-4 dated August 28, 1987, Bulletin IC-5 dated October 27, 1987, and Bulletin No. IC-9 dated June 26, 1992.

Sec. 38a-353 of the Connecticut General Statutes requires that whenever any damaged motor vehicle covered under an automobile insurance policy has been declared to be constructive total loss by the insurer, the insurer shall, in calculating the value of such vehicle for purposes of determining the settlement amount to be paid to the claimant, use at least the average of the retail values given such vehicle by (1) The National Automobile Dealers Association Used Car Guide and (2) one other automobile industry source which has been approved for such use by the Insurance Commissioner.

Pursuant to the authority of this Statute, the National Markets Reports Inc.. Red Book Region ("Red Book"), the Automatic Data Processing Autotrak Valuation Service for Connecticut local market conditions ("Autotrak"), and the Local Market Valuation Service of CCC Information Services Inc. ("CCC") are hereby approved as second sources for calculating the value of damaged motor vehicle declared to be constructive total loss. The terms and conditions of the above described Bulletins remain in full force.

The Director of the Consumer Affairs Division, however, is hereby directed to maintain list of those companies that are approved by the Insurance Department as second sources, and to accept and review applications of other valuation service companies that desire to be added to this approved list. Therefore, in the future, insurers will not be notified by bulletin of additional approvals, but will be required to determine the approval of the other second sources by contacting the Consumer Affairs Division of the Insurance Department.

Insurers are further reminded of the prohibition against "source shopping" as detailed in Bulletin No. IC-9.

Robert R. Googins, Insurance Commissioner

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