The California Department of Insurance (DOI) has released its proposed
changes to the state’s anti-steering statute. The proposed rules 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 rules would also prevent an insurer from raising
questions about the quality of the repair facility selected by the
claimant.
Last year, the Collision Repair Association of California (CRA)
sponsored the vetoed S.B. 1167, which would have required insurers to
ask policyholders if they’ve chosen a repair shop prior to suggesting
one and, due to revisions, would have also created a task force to
study issues addressed by Insurance Code Section 758.5 (the
anti-steering statute). The CRA and the California Autobody Association
(CAA), along with representatives from auto dealer and insurance
groups, were also part of a task force studying labor rate and steering
issues to help the DOI create possible changes to state insurance law.
The CRA believes the DOI’s proposed changes to the state’s anti-steering law would improve enforcement of it.
“The proposed steering rules should stop blatant acts of steering,”
said Lee Amaradio, CRA president. “The final proof will be how the
Department of Insurance enforces the rules when they become final. I
would like to thank the insurance commissioner for adding clarity to a
law designed to protect consumer choice.”
CRA Executive Director Allen Wood will testify on the rules at a public
hearing on Feb. 25 at 10 a.m. at the Employment Development Auditorium,
722 Capitol Mall, Sacramento. Insurers and other trade groups are also
expected to testify.
The CRA invites its members to e-mail comments on the proposed rules to Wood at [email protected] and CRA lobbyist Richard Steffen at [email protected].
Click HERE to download a PDF copy of the proposed changes.
