A measure opposed by the insurance industry, that would make itillegal for carriers to gives customers auto repair shop namesafter an accident, was stalled in committee this week.

|

Assembly Bill 353 stalled after a public hearing by the Assemblyinsurance committee on Wednesday was held without a vote.Legislators said there might be another hearing in the future.

|

At Wednesday's session a variety of insurers opposing themeasure–including American Family, Progressive, State Farm andKeystone Automotive–spoke against it, while its advocates, inaddition to its sponsor, included the Wactal Wisconsin AutomotiveCollisions Technicians Association, a number of small body shops,and various auto and truck dealer association.

|

In order for the measure to move forward in the AssemblyInsurance Committee, Chairman Rep. Frank Lasee, R-Green Bay, mustschedule the bill for an executive committee meeting, which he hasnot done, said Joyce Kiel, a senior staff attorney with thelegislature.

|

The legislation would make it illegal for an insurance companyrepresentative to provide information about repair options, such aswarranties; eliminate an insurer's ability to negotiate discountrates with repair facilities; and delay the claims process.

|

The proposed legislation would amend the current law thatalready prohibits insurers from providing information concerning“repair or replacement of motor vehicle glass,” according to thebill.

|

The current Wisconsin law already prohibits insurers fromrequiring the use of a specific repair facility for glassreplacement as a condition of coverage.

|

Ms. Kiel said the bill's language would expand the law to coverother collision repairs.

|

But some insurance interests, such as AIA, are against suchlegislation.

|

“The proposed legislation puts a muzzle on the simple process ofan insurer recommending a reputable auto body repair facility totheir own customer,” said AIA's assistant vice president, Midwestregion, John Birkinbine.

|

“The legislation being promoted under the veil of 'consumerrights' actually takes away the customer's right to choose a higherlevel of service and a streamlined claims process,” he added.

Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader

  • All PropertyCasualty360.com news coverage, best practices, and in-depth analysis.
  • Educational webcasts, resources from industry leaders, and informative newsletters.
  • Other award-winning websites including BenefitsPRO.com and ThinkAdvisor.com.
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.