Group of State Legislators Draft Model Anti-Steering
Legislation, Aftermarket Parts Regulation; Will Review During Upcoming
June 7, 2010
The National Conference of Insurance Legislators (NCOIL) has developed
drafts of a proposed model act for anti-steering efforts and one
for the regulation of aftermarket crash parts and repairs, both
of which it will review at its upcoming conference in Boston.
The model anti-steering act is designed to provide for consumer
choice in selection of an auto repair facility, and promote accountability,
according to the draft, and would require that no insurer
providing collision or comprehensive coverage
that repairs by made to such vehicle in a particular place by a
It continues, In processing any such claim, the insurer shall
not, unless expressly requested by the insured, recommend or suggest
repairs be made to such vehicle in a particular place or shop or
by a particular concern.
The anti-steering language originally was part of a model law addressing
crash parts and repair, but the group voted during its Spring 2010
meeting to create a separate model law on this subject. NCOIL based
the anti-steering language on the similarly worded New York State
insurance law, section 2610.
In addition, a substitute version of the model law has been proposed
as well, and will be reviewed alongside the original at the upcoming
meeting, according to NCOIL spokesperson Candace Thorson. The proposed
revision, if passed, would add several clauses, including language
prohibiting insurers from "engag[ing] in any act of coercion
or intimidation causing or intended to cause an insured or claimant
to utilize a preferred repair facility."
Auto glass currently is excluded from the definition of a repair
facility, but Thorson says a proposal is expected to be made in
the coming weeks by Rep. Barb Byrum (D - Mich.).
NCOIL also has developed a model law addressing aftermarket parts
and repairs, the model measure addresses crash parts
specifically and excludes windows from this designation. Rather,
a crash part is defined as any replacement part made of sheet
metal, plastic fiberglass or a similar material that generally constitutes
the exterior of a motor vehicle.
Both measures, currently in draft form, will be reviewed by the
NCOIL property-casualty insurance committee during the groups
upcoming July conference in Boston. Once finalized, the model language
would be available for templates for state bills that legislators
can introduce in their respective states.
NCOIL is made up of state legislators from across the country that
are involved in their own states legislation insurance committees,
and one of its goals is to create model laws that can be introduced
as bills throughout the nation, in an effort to prevent further
federal regulation of insurance, according to the groups website.
The group is funded by its member state legislatures, which pay
dues of $10,000 per year.
The purpose of NCOIL is to help legislators make informed
decisions on insurance issues that affect their constituents and
to declare opposition to federal encroachment of state authority
to oversee the business of insurance, as authorized under the McCarran-Ferguson
Act of 1945, reads further information from NCOIL.
Do you think insurance should be regulated on a state basis
or federal basis? Please e-mail your thoughts to firstname.lastname@example.org,
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