SB 709 Prohibits automobile insurers from requiring the use of specific repair shops
Sponsor: Shoemyer
LR Number: 2585L.02I Fiscal Note:
Committee: Small Business, Insurance & Industrial Relations
Last Action: 3/8/2007 - Second Read and Referred S Small Business, Insurance & Industrial Relations Committee Journal Page: S518
Title: Calendar Position:
Effective Date: August 28, 2007

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Current Bill Summary

SB 709 - Under this act, an insurer may refer a vehicle owner to a list of shops if they are specifically asked for a referral. The act provides that all claims paid by an insurer for motor vehicle damages shall be paid to the claimant by check, electronic transfer of funds or other means that provides the claimant direct access to the funds. Labor rates for motor vehicle damage repairs that are paid by insurers to claimants shall be based on the usual and customary repair rates. A violation of this act by an insurer shall constitute an unfair and deceptive insurance practice. Under the act, appraisers shall not require that repairs be made or not be made at a specific repair shop. Appraisal forms shall inform the claimant that he or she has the right to choose a repair facility to have his or her vehicle repaired. The act further provides that insurers shall not require insureds to use specific repair shops. The act requires damage appraisers to have made physical inspections of vehicles when preparing damage estimates.