Iowa Senator Calls for Review of Insurer Direct Repair Programs
February 7, 2011

Iowa Sen. Brad Zaun has introduced a senate file calling for the establishment of a committee that would study auto insurance direct repair programs in the state.

If passed, the study would include a review and analysis of "such direct repair programs by the automobile insurance industry in Iowa and the effect of the use of such programs on automotive body repair shops, insurance costs and Iowa consumers."

Zaun has proposed that the committee should include legislative members, consumers, body shop representatives and insurers.
The committee would meet twice during 2011 and submit its findings by January 1, 2012.

The Senate File currently is under the review of the state's Senate Commerce Committee.

Lobbyists for several groups-including some representing the insurance industry and some representing the automotive repair industry-have filed undecided declarations toward the bill. These include the Property Casualty Insurers Association of America, the Independent Insurance Agents of Iowa, State Farm, AIG, the Automobile Dealers Association, and the Alliance of Automobile Manufacturers.

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