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California Department of Insurance Releases Proposed Anti-Steering Regulations

The California Department of Insurance has issued its proposed regulations designed to prevent steering in the state. The one-page document, which has not yet been enacted, "applies to any claim in which an insurer may be required to provide benefits for repair of a motor vehicle."

According to the proposed regulations, unless a consumer expressly requests a referral, once the consumer has chosen a repair facility, "the insurer shall not suggest or recommend that the claimant select a different automotive repair dealer." The regulations note that suggesting or recommending includes: communication regarding the insurer's direct repair program or its list of approved vendors; communication regarding the quality of the chosen repair facility; and communication which identifies a repair facility other than the one chosen by the consumer, unless "expressly requested."

At least one collision repair group-the Collision Repair Association of California (CRAC) thus far has come out in support of the regulations.

"The proposed steering rules should stop blatant acts of steering," says Lee Amaradio, president of the CRA. "The final proof will be how the Department of Insurance enforces the rules when they become final."

CLICK HERE for full text of regulations.

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