The new bill, also referred to as HB 411, “prohibits insurance companies from requiring claimants to use a particular place for auto glass window repair.”
“An insurer shall not recommend the use of a particular motor vehicle service or network of repair services without informing the insured or claimant that the insured or claimant is under no obligation to use the recommended repair service or network of repair services,” a portion of the bill reads.
As the bill currently reads, a section regarding insurer intimidation would also be included. Its goal is to prevent insurers from swaying insureds from choosing a repair company that better suits the insurers.
“An insurer shall not engage in any act or practice of intimidation, coercion, threat, incentive, or inducement for or against an insured or claimant to use a specified place of business for repair and replacement services,” a portion of the bill reads.
There are also fines and additional disciplinary actions that can result from insurers who are found in non-compliance with HB 411. According to the newly proposed bill, the first offense will result in a fee of $1,000; the second offense, within a twelve-month period, would increase to $2,500. If there were to be a third offense within a twelve month period, it would result in a $5,000 fine. Further action can be taken by the commissioner, according to the bill, that includes “the refusal to issue a license or to suspend or revoke a license issued to any producer to sell insurance in this state.”
To view the bill’s full text, click here.