New York Repairers Allowed to Rebate Deductible, State Says - BodyShop Business

New York Repairers Allowed to Rebate Deductible, State Says

The New York Office of General Counsel has affirmed repairers’ right to waive or discount a customer’s deductible. Last month’s opinion represents the position of the New York State Insurance Department.

The department wanted to determine if a shop’s payment to the insured of all or part of the insurance deductible constituted a rebate program in violation of New York insurance law. The state concluded that it did not, as there is no apparent relationship between the shop and any insurance company, and the shop is neither a licensee under the insurance law nor acting on the part of a licensee.

The Insurance Department released its first opinion on the matter in October 2007 after a shop advertised that it would pay a customer’s deductible, or a portion of it. An individual alerted the department, inquiring if the shop was violating state laws by offering to pay insurance deductibles for its customers before any work is actually done.

The October 2007 opinion stated that there may be circumstances in which a plan to waive or reduce a deductible could be permissible under New York law. The inquirer then submitted a second request for an opinion, asking whether a shop’s payment of the deductible to the insured after work is done constitutes an unlawful rebate. The Office of General Counsel responded with its March 26 opinion, noting that a shop entices any and all vehicle owners to use its services, irrespective of the vehicle owner’s insurance.

For more information, contact Senior Attorney Susan A. Dess at the New York City office at [email protected] or (212) 480-5259.

To read the opinion, click HERE.

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,

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.