Pennsylvania Resolution Introduced to Investigate Prevalence of Steering Among Insurers

March 4, 2010

A Pennsylvania Senator has introduced a resolution urging the state's insurance commissioner to investigate the prevalence of steering. In the resolution, this practice is described as "motor vehicle insurers coerce[ing] or otherwise attempt[ing] to aggressively direct their insureds who have filed claims for damaged motor vehicles to use motor vehicle repair shops that have been pre-approved by the insurer or that are affiliated with the insurer, thereby restricting or adversely affecting the choice of the insureds to select repair shops of their own choice."

"It appears that motor vehicle insurers coerce or otherwise attempt to aggressively direct their insureds who have filed claims for damaged motor vehicles to use motor vehicle repair shops that have been preapproved by the insurer or that are affiliated with the insurer," reads the resolution. " … Such activity by an insured restricts or adversely affects the choice of its insureds to select repair shops of their own choice … and there is concern that this activity may be a widespread insurance practice in this Commonwealth."

The resolution was introduced on February 26 by Sen. John C. Rafferty (R) and was referred to the Senate's banking and insurance committee.

If passed in its current form, the Insurance Commissioner would be required to report the findings of its investigation to the Pennsylvania General Assembly within six months of the resolution's adoption.

CLICK HERE for the full text of the resolution.

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