Bills Targeting Steering, Labor Rates Introduced in Tennessee - BodyShop Business
Connect with us
Close Sidebar Panel Open Sidebar Panel

News

Bills Targeting Steering, Labor Rates Introduced in Tennessee

Advertisement

The Tennessee House and Senate are considering twin bills (H.B. 3488/S.B. 3455) targeting insurer steering and labor rates paid to collision repairers. The legislation requires insurers to inform claimants that they have the right to choose facilities to repair damaged vehicles and prohibits insurers from requiring insureds or third-party claimants to use specific businesses for vehicle repairs.

Click Here to Read More
Advertisement

The bill would make it illegal for insurers to engage in deceptive referral practices that imply that a particular repair facility must be used. Further, an insurer or physical damage appraiser may not require that appraisals or repairs be made in a specified facility. The legislation also states that when a claimant has chosen a repair facility, any attempt to change or restrict the claimant’s decision must cease.

In addressing labor rates, the legislation states that the rate for vehicle damage repair paid by an insurer must be based on the free market rate, and an insurer may not limit or discount the amount paid on the basis that the repair would have cost less if it had been made at a particular garage or facility specified by the insurer.

Advertisement

The legislation also takes on appraisals, stating that if the appraisal – which must include a thorough visual inspection – is not completed by a repair facility, the person writing the appraisal must leave an estimate of the damages with the repair facility where the vehicle is located. Anyone other than the original appraiser may not change an estimate of physical repair damage to a vehicle, and the original appraiser may not make changes to an estimate based on the recommendation of another party that has not performed a physical visual inspection of the damaged vehicle.

The respective bills have been assigned to committees in the Tennessee House and Senate.


More information:

Access copies of the bills and a full summary

Advertisement
Click to comment
Connect
BodyShop Business