Calif. 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.

CLICK HERE for full text of bill as signed by the governor.

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