Bill Text: MS HB827 | 2015 | Regular Session | Introduced
Bill Title: Automobile insurance; prohibit insurance company from steering toward certain automobile body repair businesses.
Sponsorship: Partisan Bill (Republican 1)
Status: (Failed) 2015-02-03 - Died In Committee [HB827 Detail]
Download: Mississippi-2015-HB827-Introduced.html
MISSISSIPPI LEGISLATURE
2015 Regular Session
To: Insurance
By: Representative Zuber
House Bill 827
AN ACT TO PROHIBIT THE DESIGNATION OF CERTAIN AUTOMOBILE BODY REPAIR BUSINESSES BY AN INSURANCE COMPANY THAT ISSUES OR RENEWS A POLICY OF INSURANCE IN THIS STATE COVERING A MOTOR VEHICLE; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1.
(1) (a) An insurance company, including its producers and adjusters, that
issues or renews a policy of insurance in this state covering, in whole or in
part, a motor vehicle may not:
(i) require that a claimant under the policy use a particular
automobile body repair business or location for an estimate or a repair;
(ii) engage in any act or practice that intimidates, coerces, or
threatens a claimant or that provides an incentive or inducement for a claimant
to use a particular automobile body repair business or location; or
(iii) unilaterally disregard a repair operation or cost
identified by an estimating system that the insurer and an automobile body
repair business or location have agreed to utilize in determining the cost of
repair.
(b) An insurance company, including its producers and adjusters,
that issues or renews a policy of insurance in this state covering, in whole or
in part, a motor vehicle may have access to the motor vehicle for purposes of
preparing a competitive estimate.
(2) (a) Except as provided in paragraph (b) of this subsection, if an
insurance company has direct repair programs with automobile body repair
businesses or locations, the insurance company may not limit the number of
automobile body repair businesses or locations with whom it maintains direct
repair programs.
(b) An insurance company may limit the number of automobile body
repair businesses or locations participating in the insurance company's direct
repair program to those automobile body repair businesses or locations that
comply with the provisions of paragraph (c) of this subsection. An insurance
company is not required to establish a direct repair program in a particular
market area in which the insurance company's number of policyholders does not
support establishing a direct repair program with any automobile body repair
business or location.
(c) Upon request, the insurance company shall provide, without
prejudice or bias, the claimant with a list that includes all automobile body
repair businesses or locations that are reasonably close or convenient to the
claimant and willing to provide services and that meet the insurance company's
criteria regarding whether the automobile body repair business or location:
(i) possesses the equipment necessary to undertake repairs;
(ii) undertakes training of management and technical personnel
with respect to repair information and the claims process;
(iii) agrees to perform quality repairs at the market price and
that meet reasonable industry repair standards;
(iv) agrees to warrant the quality of work, including
refinishing, in writing to the claimant, for a period of not less than one (1)
year from the date of repair;
(v) agrees to inspection of its repairs and services by the
insurance company and agrees that the insurance company may terminate the
direct repair program with the automobile body repair business or location if
the repairs and services are below the standards of quality required by the
insurance company; and
(vi) if requested, agrees to execute an agreement with the
insurance company that may contain additional criteria that are not designed to
unfairly limit the number of automobile body repair businesses or locations
with whom the insurance company maintains direct repair programs. The
additional criteria may include criteria determined to be necessary by the
insurance company and designed to ensure that the automobile body repair
business or location has the necessary estimating systems and programs and
equipment to communicate electronically with the insurance company and that the
automobile body repair business or location has taken steps to ensure the
privacy of the insurance company and the claimant.
(d) If the claimant requests the list provided for in paragraph (c)
of this subsection, the insurance company shall inform the claimant that the
claimant may use an automobile body repair business or location at the sole
discretion of the claimant.
(3) For the purposes of this section, an incentive or inducement does not
include:
(a) providing a claimant with the list provided for in subsection
(2)(c) of this section; or
(b) referring to a warranty issued by an automobile body repair
business or location.
(4) The claimant may use an automobile body repair business or location
at the claimant's sole discretion, and the insurance company shall pay for the
reasonable and necessary cost of the automobile body repair services for
covered damages, less any deductible under the terms of the policy. This
section does not require an insurer to pay more for automobile body repair
services than the market price, which is (a) the price agreed upon between the
insurer and the business; or (b) the prevailing competitive rate that is
reasonable and necessary in the local area where the repairs are to be
performed. The market price may not be less than cost.
(5) If the claimant uses an automobile body repair business or location
that is not on a list provided for in subsection (2)(c) of this section, the
insurance company may not be held liable for any repair work performed by the
automobile body repair business or location chosen by the claimant.
(6) It is unlawful for an automobile body repair business or location to
charge or agree to charge a claimant more than an uninsured customer for any
automobile body repair service.
(7) An insurance company that contracts with an independent adjuster may
not be held liable for the independent adjuster's failure to comply with the
terms of this section.
(8) For purposes of this section:
(a) "automobile body repair business or location" does not
include a business or location that exclusively provides automobile glass
replacement, glass repair services, or glass products; and
(b) "claimant" means the person seeking repair of a motor
vehicle whether that person is the insured person or a third party making a
claim against the insurer.
SECTION 2. This act shall take effect and be in force from and after July 1, 2015.
