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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