The stated goals of FAC are to ensure safe vehicle repair and guarantee consumer protection. Arizona by law to purchase and maintain insurance policies in order to operate motor vehicles on public roads.
According to a FAC spokesman, a major problem now facing the Arizona collision repair industry is that of "tied repair facilities" - those in which insurance companies own an interest. FAC is trying to head off the introduction of these tied facilities into the state as such facilities present a conflict of interest and potential for monopoly abuses as fairness to the automotive consumer evaporates.
Prohibits new "tied" facilities
The proposed legislation, HB 2298, was introduced in the Arizona House of Representatives with 22 sponsors, both Republicans and Democrats. It would prohibit insurance companies from owning or operating new tied auto repair facilities after July 1, 2004. The bill will require insurers who currently own or operate "tied" repair facilities to guarantee that the relationship protects consumer safety, assures consumer protection and maintains healthy competition in the industry.
