On a property damage claim, depreciating labor costs on insurance payments passes a significant part of labor repair costs to both the consumer and their repair contractor. The commissioner has seen a rise in the number of policy forms that write this practice into the definition of actual cash value. As a result, the commissioner is seeking rulemaking to prohibit the depreciation of labor on property claims.
Stakeholder draft released June 23, 2021
Notice to start rulemaking
Comments are no longer being accepted on this rule