California Gov. Arnold Schwarzenegger vetoed S.B. 1167, an anti-steering bill that would have required insurers to ask policyholders if they have chosen a repair shop prior to suggesting one. Schwarzenegger said he did not sign it due to a delay in passing the state’s 2008-2009 budget and the fact that the bill is not of “the highest priority” to the state.
The California Senate approved S.B. 1167 (Sen. Pat Wiggins, D-Santa Rosa) in August. The Collision Repair Association of California (CRA) originally sponsored the bill, which was introduced in February, until it became obvious that the measure didn’t have enough votes to be passed by the Senate Banking, Finance and Insurance Committee. Wiggins then amended the bill to require that the insurance commissioner form a task force to study issues addressed by Insurance Code Section 758.5 (the anti-steering statute), and the Assembly and Senate subsequently passed it.
When the bill was first introduced and insurance companies voiced their opposition to it, then-CRA Executive Director Allen Wood said, “By opposing the bill, insurers are admitting they currently violate the law, which protects consumer choice by not allowing an insurer to suggest or recommend an alternative shop to claimants who have already selected a repairer.”
The bill has now been sent back to the Senate and listed under “unfinished business.”
