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. "
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
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.
HERE for the full text of the resolution.
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