Protect Consumers' Freedom of Choice in Auto Collision Repairs

Last updated: Jun 24, 2017

Details about this bill
Category: Auto Service Related
Status: Defeated
Sponsor: Representative Scott Hamann, House 32
Session: 128
Bill #: LD 1540

Position:

Monitoring.

UPDATE: This bill has been vetoed and the veto was sustained. The bill is dead.

Summary:

This bill amends the provisions of law regarding insurers' initial communications with an insured or claimant filing a claim for collision damage to an automobile in the following ways.

1. It clarifies that an insurer may not intimidate, coerce, threaten or provide incentive or inducement to the insured or claimant to use any particular specified place of business to repair the automobile.

2. It requires an insurer to submit to and have approved by the Superintendent of Insurance the script or talking points the insurer requires to be read or told to an insured or claimant upon receiving the claim and to include in the script or talking points an advisory that the insured or claimant has the legal right to choose the motor vehicle repair service to fix the vehicle.

3. It makes a violation of the provisions of this bill and the other provisions regarding free competition in insurance for motor vehicle repairs an unfair trade practice and a civil violation with graduated fines from $1,000 for a first offense to $5,000, a requirement for the 2nd and subsequent offense that the insurer provide proof of corrective measures and, for a 4th or subsequent offense within a 12-month period, possible suspension or revocation of the insurer's certificate of authority.

4. It allows the Attorney General to enforce the provisions of this bill and the other provisions regarding free competition in insurance for motor vehicle repairs.