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California Legislature Considers Anti-Steering Law

The California Senate currently is reviewing an amendment to Section 758.5 of the state's Insurance Code, which would require insurers to ask policyholders if they have chosen a repair shop prior to suggesting a particular shop.

"If it is determined that the policyholder has selected a repair facility, the representative of the insurer shall cease, and not engage in, any discussions regarding a program or a facility that performs auto body repairs," reads amendment that appears in the bill.

While the bill arose from the auto body community, it does not exclude glass from its provisions.

The bill was introduced on February 7 by Sen. Patricia Wiggins and Sen. Carole Migden.

Much like the bills currently under review in Connecticut and Washington, insurance groups, including the American Insurance Association (AIA), are calling the bill, designed to promote consumer choice, "anti-consumer."

"This proposed law would permit some auto repair shops to steer customers to their shops by liming the information available to consumers," reads a press release issued by the AIA.

CLICK HERE to read the full text of the California bill.

CLICK HERE for the full text of the press release from the AIA.

CLICK HERE for related story about the current legislation under review in Washington.

CLICK HERE for related story about the current legislation under review in Connecticut.

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