BILL NUMBER: SB 1167 AMENDED
BILL TEXT
AMENDED IN SENATE MARCH 11, 2008
INTRODUCED BY Senators Wiggins and Migden
FEBRUARY 7, 2008
An act to amend Section 758.5 of the Insurance Code, relating to
vehicle repair.
LEGISLATIVE COUNSEL'S DIGEST
SB 1167, as amended, Wiggins. Insurance: vehicle repair.
Existing law provides that no insurer shall require that an
automobile be repaired at a specific automotive repair dealer, as
defined.
Existing law further provides that no insurer shall suggest or
recommend that an automobile be repaired at a specific automotive
repair dealer, except as specified.
This bill would provide that when a policyholder
claimant first reports vehicle damage to an
insurer, the insurer shall determine if ask
the policyholder claimant if he or she
has selected an auto repair facility prior to
providing any information regarding a program or a facility that
performs auto body repairs dealer . If
it is determined that the policyholder has selected a repair
facility, the representative of the insurer shall cease, or not
engage in, any discussions regarding a program or a facility that
performs auto body repairs the claimant responds in
the affirmative, then the claimant has chosen an automotive repair
dealer for purposes of existing law . This bill would also
prohibit an insurer from engaging in any discussion regarding a
program or a facility that performs auto body repairs, as
specified, after a claimant has chosen an automotive repair dealer.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 758.5 of the Insurance Code is amended to read:
758.5. (a) No insurer shall require that an automobile be
repaired at a specific automotive repair dealer, as defined in
Section 9880.1 of the Business and Professions Code.
(b) When a policyholder claimant
first reports vehicle damage to an insurer, the insurer shall
determine if the policyholder has selected an auto repair
facility prior to providing any information regarding a program or a
facility that performs auto body repairs. If it is determined that
the policyholder has selected a repair facility, the representative
of the insurer shall cease, and not engage in, any discussions
regarding a program or a facility that performs auto body repairs.
ask the claimant if an automotive repair dealer has
been selected. If the claimant responds in the affirmative, then the
claimant has chosen an automotive repair dealer pursuant to
subdivision (d).
(c) (1) No insurer shall suggest or recommend that an automobile
be repaired at a specific automotive repair dealer unless either of
the following applies:
(A) A referral is expressly requested by the claimant.
(B) The claimant has been informed in writing of the right to
select the automotive repair dealer.
(2) If the recommendation is accepted by the claimant, the insurer
shall cause the damaged vehicle to be restored to its condition
prior to the loss at no additional cost to the claimant other than as
stated in the policy or as is otherwise allowed by law. If the
recommendation of an automotive repair dealer is done orally, and if
the oral recommendation is accepted by the claimant, the insurer
shall provide the information contained in this paragraph, as noted
in the statement below, to the claimant at the time the
recommendation is made. The insurer shall send the written notice
required by this paragraph within five calendar days from the oral
recommendation. The written notice required by this paragraph shall
include the following statement plainly printed in no less than
10-point type:
"WE ARE PROHIBITED BY LAW FROM REQUIRING THAT REPAIRS BE DONE AT A
SPECIFIC AUTOMOTIVE REPAIR DEALER. YOU ARE ENTITLED TO SELECT THE
AUTO BODY REPAIR SHOP TO REPAIR DAMAGE COVERED BY US. WE HAVE
RECOMMENDED AN AUTOMOTIVE REPAIR DEALER THAT WILL REPAIR YOUR DAMAGED
VEHICLE. IF YOU AGREE TO USE OUR RECOMMENDED AUTOMOTIVE REPAIR
DEALER, WE WILL CAUSE THE DAMAGED VEHICLE TO BE RESTORED TO ITS
CONDITION PRIOR TO THE LOSS AT NO ADDITIONAL COST TO YOU OTHER THAN
AS STATED IN THE INSURANCE POLICY OR AS OTHERWISE ALLOWED BY LAW. IF
YOU EXPERIENCE A PROBLEM WITH THE REPAIR OF YOUR VEHICLE, PLEASE
CONTACT US IMMEDIATELY FOR ASSISTANCE."
(d) Except as provided in subparagraph (A) of paragraph (1) of
subdivision (b) (c) , after the
claimant has chosen an automotive repair dealer, the
no insurer , or representative of the
insurer, shall not suggest or recommend that the
claimant select a different automotive repair dealer.
do either of the following:
(1) Engage in any discussion, or continue any discussion,
regarding a program or a facility that performs auto body repairs,
until such time as the repairs to the claimant's automobile have been
completed.
(2) Suggest or recommend that the claimant select a different
automotive repair dealer.
(e) Any insurer that, by the insurance contract, suggests or
recommends that an automobile be repaired at a particular automotive
repair dealer shall also do both of the following:
(1) Prominently disclose the contractual provision in writing to
the insured at the time the insurance is applied for and at the time
the claim is acknowledged by the insurer.
(2) If the claimant elects to have the vehicle repaired at the
shop of his or her choice, the insurer shall not limit or discount
the reasonable repair costs based on charges that would have been
incurred had the vehicle been repaired by the insurer's chosen shop.
(f) For purposes of this section, "claimant" means a first-party
claimant or insured, or a third-party claimant who asserts a right of
recovery for automotive repairs under an insurance policy.
(g) The powers of the commissioner to enforce this section shall
include those granted in Article 6.5 (commencing with Section 790) of
Chapter 1 of Part 2 of Division 1.