Auto Insurance Claims: Tax and registration on total loss, state insurance department, applicable sales tax

Question
Hi,
I live in California and I am aware that our state law requires an insurance company to pay applicable sales tax on the value of the totaled vehicle and also reimburse the unused portion of license and registration on the totaled vehicle.  

I have a commercial truck policy and the truck is insured for an actual amount, which happens to be $40,000. The truck was declared a total loss and insurance company agrees it worth to be what it was insured for, however the adjuster refused to pay the tax and registration on that amount stating that he has paid out the policy limit of $40,000 for that vehicle and he is not required to pay any more regardless of the California statute.

Is the insurance adjuster correct?  I am going to have to pay sales tax when I buy a new truck, and the insurance company is suppose to return me to where I was before the accident in comparable vehicle, correct?

Thanks for your opinion,
Diane

Answer
With most policies, you would be correct.  But it sounds like you have a stated value policy which pays an agreed upon amount.  In this case, they would not pay more than the policy limit.  I don't work in California so I don't know if something in the law would over-ride this, but it seems unlikely.  You could call your state insurance department and ask if there is something else to consider.