Minnesota Bill Prohibiting Estimating Database Manipulation Signed by Governor - BodyShop Business

Minnesota Bill Prohibiting Estimating Database Manipulation Signed by Governor

Minnesota Governor Tim Pawlenty signed into law legislation proposed by the Alliance of Automotive Service Providers, Minnesota (AASP-MN) on May 8. Senate File 3508/House File 3822 prohibits insurers from unilaterally and arbitrarily disregarding a repair operation or cost identified by an estimating system. The legislation will become effective on August 1, 2008.  

Minnesota Statutes 2007, section 72B.092, subdivision 1, is amended to read:

Prohibitions on insurer. No adjuster or insurer, director, officer, broker, agent, attorney-in-fact, employee or other representative of an insurer shall in collision cases: unilaterally and arbitrarily disregard a repair operation or cost identified by an estimating system, which an insurer and collision repair facility have agreed to utilize in determining the cost of repair.

“Collision shops simply want to know that when they’re required to incur the cost of using certain estimating systems, and that the results of those systems will be respected in terms of the repair procedures they undertake and the payments they receive,” says Judell Anderson, AASP-MN Executive Director. "Under this bill, insurers will no longer be able to selectively use these estimating systems.”  

The estimating database bill was one of three proposals advanced by AASP-MN during the 2008 legislative session. The two other bills, one which established a licensing program for collision repair shops and the other which prohibited insurers from owning repair shops, were heard and approved in the House Commerce  Committee but did not meet deadlines for additional committee hearings. These issues will be carried over to AASP-MN’s 2009 agenda.

In addition, AASP-MN warded off a measure to reduce the threshold for disclosure of motor vehicle damage from 70 percent to 60 percent of the cash value of the vehicle prior to sustaining damage. This legislation would have been detrimental to the collision repair industry by increasing the number of vehicles designated as total losses. 

You May Also Like

Cruise Postpones Release of Driverless Taxi Service

Cruise, a GM subsidiary, recently announced that it will miss its goal of launching a large-scale self-driving taxi service in 2019.

Cruise, a GM subsidiary, recently announced that it will miss its goal of launching a large-scale self-driving taxi service in 2019. Cruise CEO Dan Ammann said the company plans to dramatically increase the number of its autonomous test vehicles on the road in San Francisco, but will not be offering rides to regular people this year, according to an article from The Verge.

Cutting Edge Automotive Solutions Partners with Andretti Rallycross

Andretti Rallycross announced that Cutting Edge Automotive Solutions will serve as technical partner on Cabot Bigham’s No. 02 OINK Clothing Beetle for the remainder of the 2019 Americas Rallycross season, showcasing their SP Tools USA brand.

Ford, Volkswagen Expand Collaboration to Include Autonomous, Electric Vehicles

Ford Motor Company and Volkswagen AG announced they are expanding their global alliance to include electric vehicles – and will collaborate with Argo AI to introduce autonomous vehicle technology in the U.S. and Europe.

CCAR Updates Website with More OSHA Alliance Resources

CCAR (Coordinating Committee For Automotive Repair) has announced the addition of new Occupational Safety and Health Administration (OSHA) Alliance content on its main website, www.ccar-greenlink.org.

CARSTAR McLaren Lake Forest and CARSTAR McLaren Irvine Open in California

Owned by husband-and-wife team James and Mary Davis, CARSTAR McLaren Lake Forest and CARSTAR McLaren Irvine are a family business.

Other Posts

CIECA to Offer Webinar on What Businesses Need to Know to Implement CIECA Standards

CIECA will hold its next CIECAst webinar, “Implementing CIECA Standards: Implementation Guide and Appendix C – BMS, Code Lists and Shema Components,” on Tuesday, Dec. 11, 2018 at 11 a.m. CST.

CARSTAR Urges Customers to Stay Winter Ready

Cold weather can create some of the harshest driving conditions of the year. The months between October and February top the list for accidents, vehicle damage and injuries.

CIECA Adds Broadly as Corporate Member

The Collision Industry Electronic Commerce Association (CIECA) announced that Broadly has joined CIECA as a corporate member.

NABR Launches BillableGenie Online Searchable Database of Insurer-Paid Not-Included Procedures

National AutoBody Research (NABR) has announced the launch of its BillableGenie online service, an independent, centralized source of actual data on insurer paid not-included procedures and operations, labor rates, labor rate concessions and other manually entered estimate line items.