California Bill Would Allow Insurers to Promote DRPs in Any Circumstance
4/6/2009
The California Assembly is considering a bill that states insurers can
provide claimants with truthful, non-deceptive information about DRP
shops at any time while discussing a claim.
The bill adds the following to California Insurance Code Section 758.5, the anti-steering statute:
Nothing in this section prohibits an insurer from providing a
claimant with truthful, nondeceptive information regarding the benefits
of selecting a specific automotive repair dealer, including, but not
limited to, the availability and duration of repair warranties.
A.B. 1200 is sponsored by the Personal Insurance Federation of
California, which represents major insurance companies including
Allstate, Farmers, State Farm and Progressive, according to the
Collision Repair Association of California (CRA).
The CRA says the bill
“attempts to rewrite” the proposed anti-steering rules the state’s
Department of Insurance is considering, which would prevent an insurer
from discussing DRPs or an alternative facility if the claimant informs
the insurer that he or she has selected a specific repair facility. The
proposed rules would also prevent an insurer from raising questions
about the quality of the repair facility selected by the claimant
(click
HERE to read more).
The CRA and California Autobody Association (CAA) both oppose the bill.
A hearing for the bill is expected to be held later this month. Click
HERE for more information on the bill, or visit
www.calautobody.com or
www.cra-ca.com.