Texas Legislation Would Prohibit TPA and Insurer
Ownership of Auto Glass Businesses; Also Addresses Steering, Inspections
March 17, 2011
A Texas legislator has introduced a bill
that would add language to the state's law prohibiting insurer or
third-party administrator (TPA) ownership of auto glass businesses,
along with language addressing auto glass "inspections."
The specific language prohibiting insurer and TPA ownership of
auto glass businesses is as follows: "An insurer or [TPA] may
not own or require an interest in an automotive glass repair service."
The legislation as drafted also includes anti-steering language,
and would prohibit an insurer or TPA from "in any manner coerce[ing]
or induc[ing] an insured to use an automotive glass repair service
other than the insured's chosen service, if the insured has chosen
The language of H.B. 2423 also addresses instances in which TPAs
or insurers require an inspection prior to authorizing auto glass
work. In its current form, the bill would require the inspector
"must be a direct employee of the insurer or an independent
party who is unrelated and unaffiliated with any automotive glass
The bill defines an "inspector" as "a party who
is engaged in the physical inspection of a claimant's vehicle for
the purposes of adjusting a claim."
Body shops that handle their own auto glass work are excluded from
the proposed law's provisions.
The bill was introduced by Texas Rep. Senfronia Thompson (D-Texas).
Megan Atchley, a spokesperson for Rep. Thompson's office, advised
glassBYTEs.com/AGRR the current auto glass bill was
designed to mirror the body shop law on record that addresses the
"Many believe the same protections given to the automotive
industry should extend to the automotive glass industry," says
Atchley, when asked how the bill came about. "We're all about
making sure the customer has the right to choose and the right to
keep the prices fair."
The bill currently is under the review of the Licensing and Administrative
A similar bill regarding inspections recently was introduced in
Arizona and currently is under
the review of the Arizona House.
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