Governor Signs A.B. 1200; Amends State's Anti-Steering Law
October 13, 2009
California Gov. Arnold Schwarzenegger approved Assembly Bill 1200
yesterday. The bill will amend the state's insurance code as it
relates to insurance referrals and anti-steering language.
Under the text of the final bill, the following language will be
added to the code:
An insurer may provide the claimant with specific truthful
and nondeceptive information regarding the services and benefits
available to the claimant during the claims process. This may
include, but is not limited to, information about the repair warranties
offered, the type of replacement parts to be used, the anticipated
time to repair the damaged vehicle, and the quality of the workmanship
available to the claimant.
In addition to adding the above language to the state's law, the
new law also requires that the written disclosure statement provided
by insurers to claimants when an auto repair shop is recommended
to be provided "in a separate and free-standing document."
It also adds the requirement that the following statement be included
in the disclosure notice provided by insurers to claimants:
"We recommend you contact any other automotive repair dealer
you are considering to clarify any questions you may have regarding
services and benefits."
The bill had passed in the Senate with a close vote of 21-7 after
three different readings.
HERE for full text of bill as signed by the governor.
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