TPA Legislation to Go Before Rules Committee in Washington
State House of Representatives
A bill before the Washington State House of Representatives, which addresses
the role of third party administrators (TPA) with regard to auto glass
insurance claims was recently passed by the State Executive Committee,
and will now move forward to the State Rules Committee.
If passed, the bill would require TPAs to disclose their financial relationship
to the insurance company. The legislation would also require all TPAs
to inform customers of their right to choose their preferred auto glass
shop. The bill goes on to state that, should a customer inform the TPA
that they have a shop preference, the TPA "shall not" recommend
an alternative auto glass shop.
Tom Grim, president of the Washington Independent Glass Association, expressed
his satisfaction with the progress of the bill by stating that the move
to the Rules Committee is, "a great first step" for the bill.
The bill does have its opposition. "We do not support the current
version of House Bill 1066 because, as proposed, it is too vague and does
not protect the rights of the consumer," says Jenny Cain, spokesperson
for Safelite Group, Inc. in a written statement provided. "It restricts
the consumer's ability to receive a recommendation for services even when
one may be requested. We continue to work with property and casualty trade
associations, insurance companies and numerous lobbyists to defeat or
appropriately amend the legislation for the benefit of the consumer."
Additionally, there is a similar bill before the State Senate. Grim, who
testified on behalf of both the House and Senate bills, expressed confidence
that the Senate legislation would pass the executive committee as well,
saying that he is, "pretty confident that it will pass the Executive