Senate Bill No. 9
Introduced By holden
A Bill for an Act entitled: An Act modifying when replacement value is used as a measure of damages for a motor vehicle; allowing the use of book value as a measure of damages; amending sections 27-1-306 and 33-23-202, MCA; and providing an applicability date.
Be it enacted by the Legislature of the State of Montana:
Section 1. Section 27-1-306, MCA, is amended to read:
"27-1-306. When replacement value to be allowed. The measure of damages in a case in which the cost of repairing a
motor vehicle exceeds its value
shall be is the actual replacement value of the motor vehicle rather than its "book value"
"book" value unless, after the damages arise, the parties agree to use the "book" value. "Book" value must be determined by
referring to the used car guides listed in 61-3-503(1)(c). Actual replacement value is the actual cash value of the motor
vehicle immediately prior to the damage. "Book" value may be used to assist in determining the actual replacement value
of the motor vehicle."
Section 2. Section 33-23-202, MCA, is amended to read:
"33-23-202. Reimbursement for total loss of motor vehicle based on actual replacement value. Each motor vehicle
insurance policy issued to residents of this state
which provides that provides that reimbursement for total loss of a motor
vehicle must be based on a "book" value rather than on the actual replacement value is void as to that provision, and
reimbursement must be made for actual replacement value except as provided in 27-1-306 is void as to such provision, and
reimbursement must be made for actual replacement value."
Section 3. Applicability. The amendments in [section 2] apply to motor vehicle insurance policies issued or renewed after [the effective date of this act].