Question

53. If an insurer wants to recommend an auto repair facility to a claimant whose car has been involved in an accident, which of the following is true?

(Choose from the following options)
1. The insured must be informed of his or her right to choose any repair center, and the insurer must cause the car to be restored to its pre-damaged state.
2. It is illegal for the insurer to make this recommendation unless it is requested by the policyowner.
3. Insurers are entitled to make such recommendations orally or in writing under any circumstance.
4. Insurers are only allowed to do this when the car lacks comprehensive and collision coverage.

Answer 1

The insured must be informed of their right to choose any repair center, and the insurer must cause the car to be restored to its pre-damaged state.

Step-by-step explanation:

When an insurer wants to recommend an auto repair facility to a claimant whose car has been involved in an accident, it is important to note that the insured must be informed of their right to choose any repair center and the insurer must cause the car to be restored to its pre-damaged state. This is known as the 'right to repair' or 'free choice of repairer' provision.