Thursday, 17 April 2008 17:45

CA Anti-Capping Bill SB 1371 Moves Out of Senate Committee with Unanimous Support

Senate Bill 1371, carried by Senator Lou Correa and sponsored by the California Autobody Association (CAA), was unanimously (11-0) supported by the members of the Senate committee on Banking, Finance, and Insurance on April 16.  There is currently no opposition to this bill.

    This bill will require insurers to pay the reasonable cost of paint and material charges associated with automobile damage insurance claimsThe bill makes it illegal for insurers to cap or limit paint and related material charges.  The bill defines capping to mean offering or paying an amount that is unrelated to an accepted industry methodology used in determining paint and material charges.  The bill will now move to the Senate floor for a vote.

    "The success of this bill getting out of the committee is a result of the hard work of various workshops and meetings between the collision industry, insurers, and the Department of Insurance," states David McClune, Executive Director, CAA. "We will continue to work with all parties to further clarify the intent of this bill." {SideBar id=1}

    In other legislative news, Senate Bill 1167 carried by Senator Patricia Wiggins, also moved out of the Senate Banking, Finance, and Insurance Committee on April 16. This bill no longer addresses providing more clarity on prohibited steering activities by insurers.  It now reads: This bill would require the Insurance Commissioner to convene a task force, including but not limited to, representatives of the automobile insurance industry and consumer protection organizations, to review issues arising from the implementation of a specific automobile repair anti-steering statute, as specified; and would require the insurance commissioner to report task force findings in writing to the Legislature by December 31, 2009.

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