Connecticut House Seeks to Outlaw Insurance
Incentives from Glass Shops
February 26, 2010
A Connecticut representative released a bill this week that would
make it illegal both for auto glass shop representatives to offer
incentives to insurance agents to encourage them to refer work to
a particular shopand would make it illegal for agents to take
incentives as well.
The bill, H.B. 5298, would read as follows, with respect to the
portion applying to auto glass businesses:
No owner, employee or agent of a motor vehicle glass repair
shop, or a spouse or child of an owner, employee or agent of such
motor vehicle glass repair shop, shall provide or offer any rebate,
gift, prize or other item of value to (1) an employee or agent
of an insurance company, or (2) a spouse or child of such employee
or agent, in exchange for selecting such motor vehicle glass repair
shop to perform motor vehicle glass repairs.
The bill notes that "rebate, gift, prize or other item of
value" does not include discounts on parts, glass, labor rates
or any other item included on an invoice. The provision carries
a maximum fine of $2,000 per violation.
Likewise, the bill would add the following guidelines for insurers:
No (A) insurance company doing business in this state, (B)
employee, agent or adjuster of such company, or (C) spouse or
child of an employee, agent or adjuster of such insurance company,
shall request, require or accept any rebate, gift, prize or other
item of value from an automobile glass repair shop as an inducement
to or as a condition for referring an insured to such automobile
glass repair shop.
Fines for insurers in violation of this provision are not stipulated
within the bill.
H.B. 5298 currently is being reviewed in the joint committee on
insurance and real estate, and a public hearing is scheduled for
next Tuesday, March 2.
HERE for the full text of the bill.
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