BILL ANALYSIS
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THIRD READING
Bill No: AB 1179
Author: Jones (D)
Amended: 4/27/09 in Assembly
Vote: 21
SENATE BANKING, FINANCE, AND INS. COMMITTEE : 11-0, 6/17/09
AYES: Calderon, Cogdill, Correa, Cox, Harman, Kehoe, Liu,
Lowenthal, Padilla, Runner, Wolk
NO VOTE RECORDED: Florez
ASSEMBLY FLOOR : 75-0, 4/30/09 - See last page for vote
SUBJECT : Motor vehicle insurance: damage assessments
SOURCE : Author
DIGEST : This bill modifies the required content of the
Auto Body Repair Consumer Bill of Rights, which the
Department of Insurance must then incorporate into future
editions, to include information informing consumers that
they have a right, including when pursuing an insurance
claim for repair of that vehicle, to seek and obtain an
independent repair estimate directly from a registered auto
body repair shop.
ANALYSIS :
Existing law:
1. Requires the Insurance Commissioner to determine the
CONTINUED
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contents of an Auto Body Repair Consumer Bill of Rights,
which is required at a minimum to include specified
information.
2. Requires the standardized form Auto Body Repair Consumer
Bill of Rights as specifically developed by the
Department of Insurance (DOI) in consultation with the
Bureau of Automotive repair to address the topics of:
A. A consumer's right to select an auto body repair
shop for auto body damage covered by the insurance
policy and that an insurer may not require this
work to be done at a particular auto body repair
shop.
B. The consumer's right to be informed about auto
body repairs made with new original equipment crash
parts, new aftermarket crash parts, and used crash
parts.
C. The consumer's right to be informed about
coverage for towing services, and for a replacement
rental vehicle while a damaged vehicle is being
repaired.
D. Toll-free telephone numbers and Internet
addresses for reporting suspected fraud or other
complaints and concerns about auto body repair
shops to the Bureau of Automotive Repair.
This bill adds to the required subject matter within the
Body Repair Consumer Bill of Rights information on a
consumer's right to seek and obtain an independent repair
estimate directly from a registered auto body repair shop
for repair of a damaged vehicle, even when pursuing an
insurance claim for repair of that vehicle.
Background
Information provide by the author to the Senate Banking,
Finance, and Insurance Committee, notes a consumer
receiving an auto body repair estimate from an insurer
often receives it in the form of a proposed settlement
offer, and may be unaware they can obtain their own
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estimate from the shop of their choice. In such a
situation, they may accept the "settlement" amount, not
realizing that the actual cost to repair the vehicle, once
it is examined by a registered auto body shop, could be
significantly higher, triggering the need to obtain a
"supplemental" payment from the insurer for the repairs to
be completed and their car returned to them. Consumers
often do not know, until they are in such a situation, that
completion of repairs and full payment might be subject to
supplemental payment negotiation. If consumers know up
front that they are entitled to obtain their own estimates,
some may choose to do so and thus obtain an independent and
possibly more complete sense of the actual damage and cost
of repairs.
FISCAL EFFECT : Appropriation: No Fiscal Com.: No
Local: No
SUPPORT : (Verified 6/18/09)
Consumers for Auto Reliability and Safety
California Autobody Association
Collision Repair Association of California
Consumer Watchdog
ARGUMENTS IN SUPPORT : According to the author's office,
this bill's purpose is to inform auto insurance consumers
that their rights with respect to the repair of their own
vehicle includes obtaining their own independent auto body
repair estimate, even if the repair involves an insurer and
the insurer has provided an estimate or "damage
assessment."
ASSEMBLY FLOOR :
AYES: Adams, Ammiano, Anderson, Arambula, Beall, Bill
Berryhill, Tom Berryhill, Blakeslee, Block, Blumenfield,
Brownley, Buchanan, Caballero, Charles Calderon, Chesbro,
Conway, Cook, Coto, Davis, De Leon, DeVore, Duvall,
Emmerson, Eng, Evans, Feuer, Fletcher, Fong, Fuentes,
Fuller, Furutani, Gaines, Galgiani, Garrick, Gilmore,
Hagman, Hall, Harkey, Hayashi, Hernandez, Hill, Huber,
Huffman, Jeffries, Jones, Knight, Krekorian, Lieu, Logue,
Bonnie Lowenthal, Ma, Mendoza, Monning, Nava, Niello,
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Nielsen, John A. Perez, V. Manuel Perez, Portantino,
Price, Ruskin, Salas, Saldana, Silva, Skinner, Solorio,
Audra Strickland, Swanson, Torlakson, Torres, Torrico,
Tran, Villines, Yamada, Bass
NO VOTE RECORDED: Carter, De La Torre, Miller, Nestande,
Smyth
JJA:do 6/19/09 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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