Good news and bad news came out of the April 12 hearing of Missouri
S.B. 709, according to Bob Smith, ASA MoKan Collision Division
director. The bill would create licensing procedures for auto body
repair facilities and physical damage appraisers.
The good news, Smith says, is that the bill got a hearing in a year
where few bills have been heard thus far. The bad news is that the
opposition to the bill was much stronger than expected.
“We knew there would be opposition to the licensing of appraisers, but
we thought it was not to be a large deal,” Smith said. “But it was just
the opposite. The insurance industry came out with all guns blazing
because they felt that they would be ‘double legislated’ because of the
unfair claims practices act. They acted like it was a personal attack
on them when the whole bill was intended to do nothing but try to
advance both industries in the public eye and ensure safety of
vehicles being repaired to be returned to the roadways of Missouri.”
“[The insurers] were also concerned about ‘further government
intervention’ in their business,” Smith added. “All their objections
were interesting from the fact that the unfair claims practices laws
concern the settlement of claims, not the construction or rebuilding of
damaged automobiles. They apply equally to anyone involved in the
claims process, including repairers. Many repairers don’t realize that
they may be subject to these same laws.
“The licensing requirements are such that most entities meet the
requirements with their current policies. The licensing of appraisers
pertains to one thing only, and that is to ensure the consumer that the
person preparing the foundation for the repair of his or her damaged
auto is knowledgeable in proper methods and procedures. There is
nothing that would change any of their policies or procedures, so why
are they so afraid to license their appraisers in Missouri when many
states already require adjuster/appraiser licensing?”
Smith admitted the bill seems all but dead but is still holding out hope because the legislative session is not over yet.
“If it doesn’t make it this time, there’s always next year,” he said.
More information:
Missouri Repairers Urged to Show Support for Shop Licensing Bill