Bill Text: MI HB4635 | 2013-2014 | 97th Legislature | Introduced

---

Bill Title: Insurance; property and casualty; use of certain body shops for repairs; prohibit insurers from requiring, and provide other protections for insureds. Amends 1956 PA 218 (MCL 500.100 - 500.8302) by adding sec. 2110c.

Spectrum: Partisan Bill (Republican 7-0)

Status: (Introduced - Dead) 2013-05-01 - Printed Bill Filed 05/01/2013 [HB4635 Detail]

Download: Michigan-2013-HB4635-Introduced.html

---

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

HOUSE BILL No. 4635

 

April 30, 2013, Introduced by Reps. MacMaster, Pettalia, Forlini, Outman, McCready, Pscholka and Zorn and referred to the Committee on Insurance.

 

     A bill to amend 1956 PA 218, entitled

 

"The insurance code of 1956,"

 

(MCL 500.100 to 500.8302) by adding section 2110c.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 2110c. (1) An adjuster or insurer or a director, officer,

 

broker, agent, attorney-in-fact, employee, or other representative

 

of an insurer shall not do any of the following with respect to a

 

claim under an insurance policy for collision damage to an

 

automobile:

 

     (a) Compel or coerce the insured or claimant to choose a

 

particular repair facility, claim center, or other similar facility

 

for presenting the claim or automobile for loss adjustment,

 

inspection, or repair, regardless of whether the repair facility,

 

claim center, or other similar facility is under the insurer's

 

direct control. A violation of this subdivision is a violation of

 

section 2110b(1). This subdivision does not prohibit an insurer

 

from requesting the insured or claimant to present the claim or

 

automobile for loss adjustment or inspection at a particular repair

 

facility, claim center, or other similar facility after informing

 

the insured or claimant that the insured or claimant is not under

 

an obligation to do so.

 

     (b) Fail to inform the insured or claimant that the insured or

 

claimant has the freedom to use a repair facility of the insured's

 

or claimant's choosing, or fail to inform the insured or claimant

 

of the insurer's ownership interest in, or agreement with, a repair

 

facility, claim center, or other similar facility as required by

 

section 2110b(2).

 

     (c) Attempt to revise or alter, through force, intimidation,

 

fear, authority, or a boycott, an estimate for repairs of a damaged

 

automobile that was written by a licensed repair facility.

 

     (d) Attempt to secure, except in the instance of imminent

 

irreparable harm and injury, the insured's or claimant's signature

 

authorizing the person securing the signature to act in behalf of

 

the insured or claimant in selecting a repair facility or claim

 

center.

 

     (e) Communicate the need to delay the commencement of repair

 

to allow the insurer to inspect the automobile for more than 1 full

 

business day from when the insured or claimant presented the claim

 

or automobile for loss adjustment or inspection.

 

     (f) Dispute coverage of the loss without performing a physical

 

inspection of the automobile.

 

     (g) Specify a nonoriginal equipment manufacturer aftermarket

 

crash part to replace a structural component of an automobile,

 

including, but not limited to, a bumper reinforcement, radiator or

 

core support, or any other part that affects the structural

 

integrity or airbag timing of the automobile.

 

     (h) Specify a nonoriginal equipment manufacturer aftermarket

 

crash part in the repair of the damaged automobile if the part is

 

not certified by a national testing board to guarantee quality,

 

fit, and crashability.

 

     (i) Specify the use of a particular vendor to procure a part

 

or other material necessary for the satisfactory repair of the

 

automobile. This subdivision does not require an insurer to pay

 

more than a reasonable market price for parts.

 

     (j) Unilaterally or arbitrarily disregard a repair operation

 

or cost identified by an estimating system that the insurer and

 

repair facility have agreed to use in determining the cost of

 

repair.

 

     (k) Place a limit on the maximum cost of paint or other

 

materials required to repair the damaged automobile. This

 

subdivision does not require an insurer to pay more than a

 

reasonable market price for paint and materials.

 

     (l) Disregard a repair facility's posted labor rate without

 

proof of the range of posted door rates available to the public in

 

the market.

 

     (2) An insured, claimant, repair facility owner, potential

 

repair facility owner, or person aggrieved by this act may bring a

 

civil action against an insurer for a violation of this section. A

 

plaintiff who prevails in an action under this subsection may

 

recover both of the following:

 

     (a) Damages in the amount of 3 times the actual loss or

 

$500.00, whichever is greater.

 

     (b) Actual attorney fees and costs.

 

     (3) A court shall liberally construe this section to allow 1

 

or more persons affected by the violation of this section to

 

commence a class action under the court rules.

 

     (4) A remedy provided by this section is in addition to any

 

other right or remedy at law or otherwise.

 

     (5) As used in this section, "nonoriginal equipment

 

manufacturer aftermarket crash part" means that term as defined in

 

section 2 of the aftermarket crash parts act, 1991 PA 158, MCL

 

257.1362.