Wednesday, 31 August 2005 17:00

CAA and Garamendi discuss steering, labor rate survey

The California Autobody Association (CAA) met with Insurance Commissioner John Garamendi early in August to discuss the enforcement of SB 551 (Anti-Steering Law) and the labor rate surveys that the Department of Insurance (DOI) have been receiving from insurance companies pursuant to Labor Rate Survey Insurance Code 758(c). 

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CAA President Kelly Swenson, Executive Director David McClune, and Attorney/Lobbyist Jack Molodanof met with the commissioner for about an hour to outline how CAA would like the department to assist in following up with the escalating number of complaints that the department has been receiving from CAA members and enforcing the law.

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Recently, the Department of Insurance settled a case with Allstate based on the complaints that have been sent in by CAA members and consumers. The details of the settlement have not been released but the CAA requested the details of the settlement from the commissioner during this meeting. This settlement is an indicator that the complaints from CAA members and consumers are having an impact and are being addressed by the DOI.
In addition, the CAA discussed the current labor rate surveys that the department has been receiving from insurance companies. The CAA is researching the methodology of some of those surveys and, at the request of the department, will assist in evaluating the accuracy of those surveys.
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The commissioner also committed to facilitating a meeting with the CAA and various insurance companies to address the issue of steering. The commissioner understands this is a serious issue with the CAA and wants to provide a forum in which these issues can be discussed between the interested parties and assist the department in enforcing this law.

Overall, the CAA believes the department understands our issues and is making an effort to assist our members with their complaints. It is sometimes difficult to get overnight results from some government agencies and this is the exact reason that CAA members and their customers cannot stop sending in the complaint forms.
Article courtesy of the California Autobody Association