 
IGA Urges NCOIL to Complete Model Anti-Steering Act; Belron US Proposes
Glass Be Removed, Name of Act Be Changed
July 14, 2010
Independent Glass Association (IGA) executive director Mike Russo
has authored a letter to the National Conference of Insurance Legislators
(NCOIL), urging the group to act in creating model anti-steering
language.
NCOIL, a group of state legislators from across the country, met
last week in Boston to review the language. Russo spoke during the
meeting and also presented his letter of support to Sen. Ruth Teichman
(R Kan.), who chairs the property-casualty committee developing
the language.
In the letter, Russo advises that windshield installation service
has been reduced to a commodity rather than the professional
service it provides.
With this in mind, we urge the members of the National Conference
of Insurance Legislators to act, he says. Legislation
protecting a consumers right to choose a repair shop is imperative
and a matter of public safety. In our view, legislators must understand
that anti-steering legislation is pro-consumer and in the best interests
of their constituents. Current practices in place in the auto glass
repair and replacement industry focus on cost rather than consumer
safety.
Russo also says that, though many states currently have anti-steering
legislation, the legislation is either defeated or diluted
to the point that it clearly favors the insurance industry, rather
than the consumers who it is meant to protect.
He adds, For the sake of your constituents, we urge you to
begin the process to put consumers first when you convene this week
at your conference in Boston.
Russo says last weeks meeting regarding the language seemed
to be a positive one.
It appeared that some of the members of the committee were
well aware of what is taking place in the auto glass industry and
it was refreshing to hear, he says. One member of the
committee was an insurance agent and spoke pointedly to the obstacles
his policyholders encounter in reporting a glass claim. But it is
still apparent that much needs to be done to educate the legislators
on the anti-consumer practices in the auto glass industry. The presence
of the third-party administrators in the auto glass industry does
not benefit consumers and it certainly does not promote competition.
Belron US also had authored a letter to Teichman regarding its
stance on the legislation (CLICK
HERE for related story), and has made several suggested revisions
to the model act.
In its proposed changes to the amendment, Belron US is suggesting
that auto glass claims be removed from the realm of the act, and
that its name be changed from Model Act Regarding Insurer
Steering to Model Act Regarding Consumer Choice in Autobody
Repair. The company also is proposing that the summary of
the bill be changed so that, in addition to focusing on consumer
choice, it also focuses on prohibiting incentives provided to insurers.
Belron US is proposing that the words mandates certain disclosures,
and establishes violations as unfair claims settle practices
would be removed from the summary of the act, and replaced with:
and prohibits the offering and acceptance of incentives in
exchange for the referral of a particular insured to a repair facility.
The proposed changes from Belron US also would remove language
that would have changed payment guidelines for network versus non-network
shops and would replace it with language that prohibits providing
incentives for insurance agents and insurers to offer referrals.
Belron US is proposing that the following sentences be removed:
- [An insurer authorized to do business shall not] recommend
a repair facility once an insured or claimant has advised the
insurer that one has been selected, or interfere with the insured
or claimants selection once it has been made; and
- [An insurer authorized to do business shall not] pay a non-preferred
facility selected by an insured or claimant less to complete a
repair than the insurer would have paid a preferred repair facility
for the same work.
The company proposes that the above instead be replaced with the
following language addressing incentives:
- No repair facility shall offer a rebate, gift, gift card,
cash, or anything of value to an insurer in exchange for the referral
of a particular insured to that repair facility;
- No repair facility shall offer a rebate, gift, gift card,
cash, or anything of value to an insured in exchange for that
insured filing an insurance claim for auto body services.
- Nothing in this section shall prohibit an insurer from entering
into a preferred provider agreement or from participating in any
direct repair program or direct repair network with repair facilities.
NCOIL has decided to continue discussion of the model steering
language at its next meeting, to be held in Austin, Texas, this
November.
CLICK
HERE for full text of letter from Russo.
CLICK HERE
for proposed Belron US changes.
What do you think about the proposed language? Do you think
auto glass claims should be included? Please e-mail pstacey@glass.com.
Need more info and analysis about the issues?
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