BILL NUMBER: AB 1098	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MARCH 31, 2011

INTRODUCED BY   Assembly Member Hagman

                        FEBRUARY 18, 2011

   An act to amend Section 758 of the Insurance Code, relating to
insurance.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1098, as amended, Hagman. Insurance: unlawful practices.
   Existing law makes it unlawful for an insurer to require an auto
body repair shop, as a condition of participation in the insurer's
direct repair program, to pay for the cost of an insured's rental
vehicle that is replacing an insured vehicle damaged in an accident,
or to pay for the towing charges of the insured with respect to that
accident.  Existing law authorizes a registered auto body repair
shop, denied participation in an insurer's direct repair program, to
report the denial to the Department of Insurance, which maintains a
record of those denials, and requires an insurer, upon the request of
the department, to disclose the fact that a denial was made. 

   This bill would require the department's request that an insurer
disclose the fact that a denial of participation in its direct repair
program was made be in writing.  
   This bill would make a technical, nonsubstantive change to that
provision. 
   Vote: majority. Appropriation: no. Fiscal committee:  no
  yes  . State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Section 758 of the   Insurance
Code   is amended to read: 
   758.  (a) It is unlawful for an insurer to require an auto body
repair shop registered pursuant to Sections 9884 and 9889.52 of the
Business and Professions Code, as a condition of participation in the
insurer's direct repair program, to pay for the cost of an insured's
rental vehicle that is replacing an insured vehicle damaged in an
accident, or to pay for the towing charges of the insured with
respect to that accident. However, the insurer and the auto body
repair shop may agree in writing to terms and conditions under which
the rental vehicle charges become the responsibility of the auto body
repair shop when the shop fails to complete work within the
agreed-upon time for repair of the damaged vehicle.
   (b) A registered auto body repair shop that is denied
participation in an insurer's direct repair program may report a
denial to the department, which shall maintain a record of all those
denials for the purposes of gathering market conduct information. An
insurer, upon the  written  request of the department, shall
disclose the fact that a denial was made.
   (c) Any insurer that conducts an auto body repair labor rate
survey to determine and set a specified prevailing auto body rate in
a specific geographic area shall report the results of that survey to
the department, which shall make the information available upon
request. The survey information shall include the names and addresses
of the auto body repair shops and the total number of shops
surveyed. 
  SECTION 1.    Section 758 of the Insurance Code is
amended to read:
   758.  (a) It is unlawful for an insurer to require an auto body
repair shop registered pursuant to Sections 9884 and 9889.52 of the
Business and Professions Code, as a condition of participation in the
insurer's direct repair program, to pay for the cost of an insured's
rental vehicle that is replacing an insured vehicle damaged in an
accident, or to pay for the towing charges of the insured with
respect to that accident. However, the insurer and the auto body
repair shop may agree in writing to terms and conditions under which
the rental vehicle charges become the responsibility of the auto body
repair shop when the shop fails to complete work within the time
agreed upon for repair of the damaged vehicle.
   (b) A registered auto body repair shop that is denied
participation in an insurer's direct repair program may report a
denial to the department, which shall maintain a record of all those
denials for the purposes of gathering market conduct information. An
insurer, upon the request of the department, shall disclose the fact
that a denial was made.
   (c) Any insurer that conducts an auto body repair labor rate
survey to determine and set a specified prevailing auto body rate in
a specific geographic area shall report the results of that survey to
the department, which shall make the information available upon
request. The survey information shall include the names and addresses
of the auto body repair shops and the total number of shops
surveyed.