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Governor Arnold Schwarzenegger announced his support for Proposition 64, a November ballot measure whose supporters claim would stop "shakedown lawsuits." 

California independent body shop owners got a boost on September 29 when Governor Arnold Schwarzenegger signed a bill that amends the automotive repair laws (Business & Professions Code Sec. 9880) to more strictly define who the customer is when a vehicle is being repaired, making it clear that an insurance company paying to repair a car is not the customer and cannot take the place of the customer. 

Thursday, 30 September 2004 17:00

Farmers files suit against LA shop for fraud

Farmers Insurance Exchange has begun serving civil summons and complaints upon a Los Angeles body shop and its director, accusing them of taking part in a scheme designed to defraud Farmers and its policyholders. The civil complaint, which is similar to prior suits filed against shops, seeks damages for the fraud committed. 

Standing at the corner of 8th Street and Kingsley Drive in Koreatown in Los Angeles, Insurance Commissioner John Garamendi announced several arrests in a large "paper collision" insurance fraud ring. He also asked the community to assist in locating three members who remain at large. 

Oil, antifreeze and paint. An auto body repair facility can create more than 200 gallons of potentially hazardous waste each year. Where do these by-products of the body shop business go? 

Warning drivers that anyone can become a victim of insurance fraud, Insurance Commissioner John Garamendi and the California Highway Patrol (CHP) announced the bust of an alleged auto insurance fraud ring that cost insurers - and ultimately policyholders - at least $1.5 million in the past year alone.