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Wednesday, 29 May 2019 17:24

New Minnesota Bill Aims to Prohibit Insurers From Certain Actions

Written by Emmariah Holcomb, glassBYTEs.com

A Minnesota bill that aims to “prohibit an adjuster or insurer from certain actions relating to motor vehicle repairs and claims,” was recently introduced in the House.

The bill, also known as H 2919 seeks to remove portions of the existing law and has been referred to the House Commerce Committee.

 

One portion H 2919 aims to remove is the advisory which asks, “Have you selected a repair shop or would you like a referral?” and looks to add the following: “An insurer is prohibited from attempting to influence the insured’s or claimant’s choice of repair shop.”

 

The current law requires an insurer to provide the following advisory to the insured at the time a claim is reported:

 

“You have the legal right to choose a repair shop to fix your vehicle. Your policy will cover the reasonable costs of repairing your vehicle to its pre-accident condition no matter where you have repairs made. Have you selected a repair shop or would you like a referral?”

 

If passed, H 2919 also would prohibit insurers from doing the following:

 

  • [Specifying] a price for a part or other materials necessary for the satisfactory repair of the vehicle; or [requiring] a vehicle to be repaired with a specific part or product solely because it is the least expensive part or product available;
  • [Requiring] a vehicle to be repaired with a part that costs less than the reasonable and necessary amount of the part. For purposes of this section ‘reasonable and necessary amount’ means the amount determined by the original equipment manufacturer and estimating systems required to repair a vehicle to the condition before the damage to the vehicle occurred; and
  • [Disregarding] a repair operation or cost identified by an estimating system, including the system’s procedural pages and any repair, process, or procedure recommended by the original equipment manufacturer of a part or product.

 

To view the bill’s full text, click here.

 

We thank glassBYTEs.com for reprint permission.

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