Kentucky DOI defines valuation guides for auto insurance claims, hearings set

The Kentucky Department of Insurance (DOI) Commissioner Sharon Clark filed an emergency administrative regulation last week defining Kelley Blue Book and J.D. Power as the valuation guides, or tools, that property and casualty insurers should use when determining the retail value of a wrecked, destroyed, or damaged vehicle. 

Senate Bill 136, passed in March, required the DOI to promulgate an emergency administrative regulation defining the nationally accepted used car valuation tools that insurance companies should use to value a vehicle. 

The regulation went into effect July 1. Yet, the DOI will hold two public hearings on the regulation in the coming months. 

Chris Nolan, Insurance Institute of Kentucky executive director, told Insurance Journal that the bill stems from the National Automobile Dealers Association (NADA) being purchased by J.D. Power in 2017. He said Kentucky statutes specifically named NADA guides as the system for insurers to use for valuations when setting claims. 

The Department of Revenue was directed to draft new rules on the guidebooks in 2024 but never completed the task, according to the article. 

Nolan noted that some insurance companies prefer other valuation guides, such as CCC Intelligent Solutions’ system, and that further regulations from the DOI may be needed. 

The two public hearings will be held at 9 a.m. on August 25 and 9 a.m. Sept. 23, at 500 Metro St. in Frankfort, Kentucky. 

Anyone interested in speaking at the hearings should notify Shaun Orme at [email protected]. Written statements should also be sent to the email address. 

Written comments will be accepted through 11:59 p.m. on Aug. 31 for the first meeting and 11:59 p.m. on Sept. 30 for the second meeting.

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