California Repairers Launch Campaign to Veto A.B. 1200
The Collision Repair Association of California (CRA) and the California Autobody Association (CAA) are spearheading efforts to persuade Gov. Arnold Schwarzenegger to veto A.B. 1200, a bill that both groups feel severely weakens the state’s anti-steering code. The Assembly approved A.B. 1200 (Hayashi) 42-19 on Sept. 9. The CRA says it believes the insurance industry-supported
A.B. 1200 Sent to Governor
The California Assembly has approved the Senate’s amendments to A.B. 1200, which would loosen restrictions on the information insurers can provide clients during the claims process, and the bill has been sent to Gov. Arnold Schwarzenegger for his approval. The California Autobody Association (CAA), which opposes the bill because it believes it would weaken California’s
A.B. 1200 Debate Intensifies as Legislators Question Integrity of Insurers, Repairers
y of insurers and repairers in the process. U.S. Rep. Jackie Spier, author of the anti-steering code, penned an op-ed in the San Francisco Chronicle against A.B. 1200, saying that her 2003 anti-steering code is meant to protect consumers from what she believes are low-cost, low-quality repairs promoted by insurers. Spier claims that A.B. 1200
POINT-COUNTERPOINT: Should Labor Rate Surveys Be Abolished?
YES By Lee Amaradio Jr. A labor rate survey’s intended purpose is to establish a starting point so labor rate negotiations can begin. It’s intended to create a floor to build upon, not create labor rate caps. Today, it’s not serving any purpose other than keeping costs down for insurance companies. The major problem with
Consumer Group Says A.B. 1200 Would Allow ‘Hard Sell’ of DRPs
Non-partisan consumer advocacy group Consumer Watchdog says it’s asking California Assemblywoman Mary Hayashi (D-Hayward) to amend A.B. 1200, which would amend the state insurance code’s anti-steering statute to allow insurers to discuss policy "benefits" any time during the claims process, wording many believe will allow for steering. The bill has been passed by the Assembly
CA Court Says Insurers Don’t Have to Pay 100% for Non-DRP Repairs
A California appeals court ruled that an insurance company is only liable for 100 percent of repair costs if the insured has repairs done at an insurer-preferred shop. The case involved an insurance policy that pays 80 percent of the cost if a repair is performed at a non-preferred shop, which the plaintiff believed violated
Colorado Repairer Challenges Local Officials to Address Steering
A Fort Morgan, Colo., shop owner recently challenged his public officials to take a stand against steering, claiming that a state law that says insurers can’t require repairs be made at a specific business may not be enough to deter insurer steering practices. To raise awareness of alleged steering in Colorado, Les Linker, owner of
IGA Introduces Steering Data Collection Service
Given that steering is the number-one problem in the collision repair industry, repairers would do well to copy the Independent Glass Association’s (IGA) recent introduction of an anti-steering data collection service through www.iga.org. An incident report form is currently being used by IGA members to catalog any issues of customer intimidation, misinformation and steering. All
Legislative Lowdown
Federal – The U.S. House of Representatives is considering a bill that would remove the federal antitrust exemption from the insurance industry. In repealing the exemption, the Insurance Industry Competition Act would give the Department of Justice and the Federal Trade Commission (FTC) the authority to apply antitrust laws to anticompetitive behavior by insurance companies