The Mississippi House is considering a bill, H.B. 390, that would
prohibit insurers from requiring claimants to use specific shops for
repairs.
The bill, introduced last week, would make it illegal for insurers or adjusters to:
• Accept or solicit gifts or referral fees in exchange for referring insureds to a particular automotive repair facility
• Mandate that an insured use a specific repair facility or those on a
preferred list compiled by the insurer in order for the work to be
covered by the policy
• Restrict the right of an insured or third-party claimant to choose a
repair person or facility by requiring him/her to travel an
unreasonable distance to have the damage repaired
Per the bill, insurers would have to display the above provisions on
policies and be subjected to fines for violations if H.B. 390 is
passed.
The bill also states that the most an insurer is required to pay for a
repair is the “lowest amount that such vehicle or glass could be
properly and fairly repaired or replaced by a contractor or repair shop
within a reasonable geographical or trade area of the insured.”
The bill is being reviewed in the House’s Insurance Committee.
More information:
• View H.B. 390
