South Carolina Anti-Steering Bill Passes Committee Favorably—But with Amendment
February 16, 2012
by Penny Stacey, firstname.lastname@example.org
The South Carolina Senate banking and insurance committee has passed
favorably a bill designed to prohibit steering, according to a representative
in the office of Sen. David Thomas, who chairs the committee. The
bill contained one amendment
The amendment includes a number of additions from the bill's original
text, which would have prohibited third-party administrators (TPAs)
that also have retail divisions, or that have 10 percent ownership
or more in an auto glass business, from referring policyholders'
glass claims to themselves or from using information obtained through
its work as a TPA to solicit business.
The amendment prohibits TPAs from "requiring that repairs
be made to the insured's vehicle in a particular place or shop or
by a particular concern."
In addition, the amendment further provides that TPAs must, on
their network lists, "include providers regardless of its opinion
of the quality or workmanship of the provider concerned if that
provider performing glass repair services will meet all requirements
of the policy of automobile insurance issued by the automobile insurer
which the third-party administrator represents."
The original language of the bill read as follows: “It is
an unlawful trade practice for a motor vehicle glass repair business
actively engaged in the repair of motor vehicle glass, or a person
or entity with a ten percent or more ownership interest in that
business, and acting as a third-party administrator of insurance
claims made pursuant to insurance coverage for motor vehicle glass
repair to: (1) refer or steer, or cause to be referred or steered,
an insured’s motor vehicle glass repair business to itself;
or (2) use consumer information obtained in the process of acting
in that dual capacity to solicit motor vehicle glass repair business.”
If passed, the act would take effect upon approval by the state’s
governor, Nikki Haley.
The bill originally was introduced in the South Carolina House by
Reps. James Harrison, Joan Brady, Lewis Pinson, Elizabeth Munnerlyn,
Thad Viers, Jenny Horne and Nelson Hardwick.
The South Carolina bill is not the only recent bill across the
United States to look at this topic. The Arizona Senate also is
currently reviewing a bill that would make it unlawful “for
an auto glass repair business that is actively engaged in the repair
of auto glass, or a person or entity with at least a ten percent
ownership interest in that business, and that acts as a third-party
administrator of insurance claims made pursuant to insurance coverage
for auto glass repair to either: (1) refer or steer, or cause to
be referred or steered, an insured’s auto glass repair business
to itself. (2) Use consumer information obtained in the process
of acting in that dual capacity to solicit auto glass repair business.”
A meeting of the Arizona Senate’s banking and insurance committee
had been scheduled for today and included the bill on its agenda,
but was cancelled, according to information from the Arizona Senate.
This story is an original story by AGRR™ magazine/glassBYTEs.com™. Subscribe to AGRR™ Magazine.
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