The Commonwealth of Massachusetts

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By Mr. Koutoujian of Waltham , for the committee on Fianancial Services, on House, No. 884 , a Bill relating to consumer protection in motor vehicle glass service (House, No. 4 538 ).  March 2, 2010 .

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FOR THE COMMITTEE :

The Commonwealth of Massachusetts
 

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In the Year Two Thousand and Ten

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An Act RELATING TO CONSUMER PROTECTION IN MOTOR VEHICLE GLASS SERVICE.


 

              Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:
 

SECTION 1. Chapter 100A is hereby amended by adding the following new sections:

Section 11. Consumer P Protection and Disclosure regarding motor vehicle glass repair services.

Any motor vehicle glass repair to be performed in the Commonwealth must be performed by a registered motor vehicle glass repair shop, as defined in Chapter 100A.   Any person, including an insurer, insurance agent, third-party administrator, or a motor vehicle service establishment or other party, receiving a report of or inquiry regarding motor vehicle glass damage, or a request for motor vehicle glass repair services shall state that such motor vehicle glass repair must be performed by a registered motor vehicle glass repair shop.

Section 12. Consumer Protection and Disclosure for Motor Vehicle Glass Repair covered by insurance.

The following shall apply to any motor vehicle glass repair which is to be performed in the Commonwealth and which is covered in whole or in part by motor vehicle liability insurance:

(1)   An insurer, insurance agent, producer, adjuster or third party administrator for such insurer may not:

(a) require any person to use a particular motor vehicle glass repair shop for such motor vehicle glass repair.

(b) use or employ unfair or deceptive acts or practices for the purpose of inducing a person to use a particular motor vehicle glass repair shop to provide motor vehicle glass repair services. Such unfair or deceptive acts, include but are not limited to the following:

i . engaging in any act or practice designed to intimidate, threaten, or coerce any person to use, or for having used, a particular motor vehicle glass repair shop;.

ii.   once an insured identifies a registered motor vehicle glass repair shop as their shop of choice to provide the motor vehicle glass repair services; no appraiser or employees of an independent appraisal company, insurance company or any of its employees or representatives or third party biller, shall require, that such auto glass repair or replacement should not be made in the specified registered repair facility or facilities;

iii. Once a registered motor vehicle glass repair shop has been defined as the shop to provide the motor vehicle glass repair services, no insurer or third party biller shall assign or dispatch the repair work, or forward any related policy, policyholder, contact or repair scheduling information, to a different motor vehicle glass repair shop without the knowledge and consent of the insured;

iv. No appraiser or employees of an independent appraisal company, insurance company or any of its employees or representatives may use coercion or intimidation to cause appraisals or repairs to be made or not made, in any specified glass repair facility or facilities, unless otherwise permitted by this section. An insured, at any point in time, may elect to change their choice of glass repair or replacement facility.

(c) n egotiate with a motor vehicle glass repair shop to provide auto glass service if such repair shop is not a duly registered and licensed repair shop in the Commonwealth of Massachusetts with the Division of Standards

(2)     Provided it is consistent with the foregoing, nothing herein prohibits an insurer either directly or through its agents, producers, adjusters or third party administrator, from providing, directly or through other means, including electronic transmissions, information to assist in selecting a motor vehicle glass repair shop or scheduling such motor vehicle glass repair shop to perform the motor vehicle glass repair services.

Section 13. Enforcement.

(a)                 Any violations of Section 11 will be enforced by the Division of Standards in

          accordance with Section 100A.

(b)               Any violations of Section 12 shall constitute a violation of Chapter 176D of the

          General Laws and shall be enforced by the commissioner.

(c)               The commissioner of the division of insurance shall promulgate rules and regulations for the administration and enforcement of Section 11, 12 and 13 of this section no later than 180 after the passage of this act.   An insurance company, third party biller, agent, producer, third party biller or adjuster for such insurance company violating this section shall be punishable by a fine of not less than $1,000.00 nor more than $5,000.00 for each incident.   The fine shall be collected by the Division of Insurance and deposited in a retained revenue account to be used by the division to carry out the enforcement of this act.   Furthermore, the division of insurance shall create and make available forms for reporting such violation of this section no later than 180 days after the passage of this act.