California Anti-Steering Bill Amended; Hearing Date Set

An anti-steering bill under review in the State of California was amended and read this week in the Senate and re-referred to the committee on Business, Finance and Insurance.

If passed, the bill would amend Section 758.5 of the state's insurance code to require insurers to ask policyholders if they have chosen a repair shop prior to suggesting one.

The latest amendment to the bill reads as follows:

This bill would provide that when a policyholder claimant first reports vehicle damage to an insurer, the insurer shall determine if ask the policyholder claimant if he or she has selected an auto repair facility prior to providing any information regarding a program or a facility that performs auto body repairs dealer . If it is determined that the policyholder has selected a repair facility, the representative of the insurer shall cease, or not engage in, any discussions regarding a program or a facility that performs auto body repairs the claimant responds in the affirmative, then the claimant has chosen an automotive repair dealer for purposes of existing law . This bill would also prohibit an insurer from engaging in any discussion regarding a program or a facility that performs auto body repairs, as specified, after a claimant has chosen an automotive repair dealer.

A public hearing on the amended bill will be held April 2.

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

CLICK HERE for the full text of the amended bill.

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