Industry Supplier Speaks Out Against Arizona
Insurance Fraud Legislation
January 19, 2010
The owner of an Arizona auto glass business is speaking out against
the recently introduced state legislation targeting auto glass shops.
Kerry Soat, owner of Fas-Break in Chandler, Ariz., believes the
new bill, H.B. 2463, was written by an insurance company for
the sole benefit of the insurance companies. The bill identifies
several types of insurance fraud and addresses auto glass businesses
HERE for related story.)
It also is a total waste of the Arizona taxpayers time
and money to even consider what is proposed in this bill,
says Soat, who also serves as vice president of the Arizona Auto
Glass Association It was my assumption that the legislature
was more concerned about our budget deficit this year than unfairly
singling out an industry to please the insurance companies.
Soat also suggests that the legislation might be better suited
to serve all related industriesnot just auto glass.
If we are going to pass a law that applies to the collision
and comprehensive sections of an insurance policy, it should apply
to all industries that use it, like the auto body shops,
auto repair shops, tow companies, auto rental agencies, dent removal
companies, head light restoration companies, and any other companies
that provide work to the insurance companies under an auto policy,
Finally, Soat questions the origins of the proposed legislation.
Who in the world ever came up [with] or wrote this?
he asks. Since when does an insurance company need to
or have the right to take over the legal rights from
an insured to enforce a law without the permission of the insured?
Doesnt the insurance company only have the legal obligation
to pay the invoice for work performed under an insured loss by an
insured according to the insurance contract? Since when do the insurance
companies become the caped crusader to protect their insureds
from the evil force of auto glass companies?
He adds, Auto glass companies are small business people sometimes
one man operations working out of their homes trying to build their
dream of building a larger business and hire employees. What does
this country need nowmore employees? How counterproductive
is this law?
Soat also questions whether consumer complaints led to the introduction
of the bill.
How many articles to the editor have we seen regarding these
mass fraudulent actions by the auto glass companies? he asks.
The only complaints I get from clients are [about] over-aggressive
sales tactics at car washes.
He adds, I think if you tally complaints, you will find more
complaints at the Arizona Department of Insurance regarding the
payment of claims and the handling of the claims by insurance companies
than the fraudulent actions of a few auto glass companies.
CLICK HERE to
read the full text of Soat's statement.
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