Insurer-Owned Shop Bill Introduced in Nevada - BodyShop Business

Insurer-Owned Shop Bill Introduced in Nevada

A bill introduced in the Nevada Assembly is designed to prevent insurance companies from acquiring or opening collision repair facilities and would place restrictions on pre-existing relationships between insurance companies and shops they own interest in, referred to as “tied shops.”

The bill, A.B. 297, would make the relationship between an insurer and tied shop like that of an insurer and a DRP shop and would prohibit insurers from providing a competitive edge to tied shops.

Finally, the bill would require a notice posted in all tied shops that reads:

“This body shop is owned in whole or in part by (Name of Insurer). You are hereby notified that you are entitled to seek repairs at any body shop of your choice.”

The bill would be effective July 1, 2009, and is supported by the Nevada Collision Industry Association (NCIA).

“By repairing property it also insures at an insurer-owned body shop, an insurer can profit greatly by performing inexpensive, substandard repairs, thus creating a conflict of interest,” Michael Spears, a founding member of the NCIA, said. “In this process, the consumer misses the benefit of the unbiased expertise and opinion of an independent repair facility. Insurer-owned body shops may eliminate checks and balances, compromising consumer protections.”

Allstate Insurance, owner of Sterling Autobody Centers, challenged a similar Texas law in court, and the court upheld the state’s restriction on insurer-owned shops. Sterling has one location in Nevada.

Last year, the Michigan House of Representatives passed a bill banning insurer-owned shops, but it didn’t pass the Senate before the end of the legislative session (click HERE to read more).

For more information, visit www.ncia.us.

You May Also Like

NABC Donates Recycled Ride to Deserving Las Vegas Family

The NABC, GEICO and Caliber Collision recently donated a refurbished 2019 Toyota Camry to a Las Vegas resident and his adopted family.

The National Auto Body Council NABC), along with GEICO and Caliber Collision, recently donated a refurbished 2019 Toyota Camry to a Las Vegas resident and his adopted family during the pre-race festivities of the Pennzoil 400 at Las Vegas Motor Speedway. The donation was made via the NABC's Recycled Rides program.

Dent Wizard Hires New Senior VP of Strategic Growth & Development

Adrian Gonzalez will be charged with driving growth through mergers and acquisitions.

CCC Report Analyzes Labor Pressures, Vehicle Complexity

Report shows advanced technology is contributing to costlier repairs, higher claims costs and longer cycle times.

Crash Champions Continues Steady Expansion Across Idaho

Crash Champions has announced the acquisition of Hoffman Auto Body in Boise, Idaho.

NABC Donates Recycled Ride to Tucson, Ariz. Family

The NABC, Allstate, Maaco and  Meineke Car Care recently donated a refurbished vehicle to a deserving Tucson, Ariz.-area mom.

Other Posts

ASE Practice Tests Available Online

ASE is encouraging those pursuing certification to take the official practice tests as part of their test preparation process.

Corby’s Collision Center: Since 1942

Bentley (Bud) and Evelyn Corby started Corby’s in a little gas station in Honeoye Falls, N.Y.

CIF Announces Enterprise as Repeat Annual Donor

Enterprise has donated for the fourth consecutive time at the Urgent Care (second highest) tier.

NABC Donates Recycled Ride to Central Georgia Mom

The NAB), GEICO and Five Star Collision Center-Wimbish recently donated a refurbished vehicle to a deserving mother of four.