The California Senate approved S.B. 1167 (Sen. Pat Wiggins, D-Santa
Rosa), an anti-steering bill. The bill now needs to be approved by Gov.
Arnold Schwarzenegger.
The Collision Repair Association of California (CRA) originally
sponsored the bill 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). If the bill gets final
approval, the task force must report its findings by Dec. 31, 2009.
The bill would also amend Section 758.5 of the state’s insurance code
to require insurers to ask policyholders if they have chosen a repair
shop prior to suggesting one.
The California Assembly passed the bill on July 15 and passed it to the
Senate. The CRA has worked with Wiggins to determine how the bill might
be most effective in reducing unfair and illegal insurer practices.