HF 458

as introduced - 89th Legislature (2015 - 2016) Posted on 01/29/2015 01:55pm

A bill for an act
relating to commerce; regulating conduct of an insurer in collision cases;
amending Minnesota Statutes 2014, section 72B.092, subdivision 1.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2014, section 72B.092, subdivision 1, is amended to read:

Subdivision 1.

Prohibitions on insurer.

No adjuster or insurer, director, officer,
broker, agent, attorney-in-fact, employee, or other representative of an insurer shall
in collision cases:

(1) limit the freedom of an insured or claimant to choose the shop;

(2) require that an insured or claimant present the claim or the automobile for loss
adjustment or inspection at a new text begin particular motor vehicle repair shop or shops designated by
the insurer, or a new text end "drive-in" claim center or any other similar facility solely under the
control of the insurer;

(3) engage in boycotts, intimidation or coercive tactics in negotiating repairs to
damaged motor vehicles which they insure or are liable to claimants to have repaired;

(4) attempt to secure, except in an emergency, the insured's or claimant's signature
authorizing the party securing the signature to act in behalf of the insured or claimant in
selection of a repair shop facility;

(5) adjust a damage appraisal of a repair shop when the extent of damage is in
dispute without conducting a physical inspection of the vehicle;

(6) specify the use of a particular vendor for the procurement of parts or other
materials necessary for the satisfactory repair of the vehicle. This clause does not require
the insurer to pay more than a reasonable market price for parts of like kind and quality
in adjusting a claim; deleted text begin or
deleted text end

(7) unilaterally and arbitrarily disregard a repair operation or cost identified by an
estimating system, which an insurer and collision repair facility have agreed to utilize in
determining the cost of repair new text begin ; or
new text end

new text begin (8) specify or require any motor vehicle repair shop to utilize specific products,
vendors, distributors, manufacturers, or suppliers in order to carry out vehicle repairs for
an insured or claimant. The terms of pricing agreements an insurer has negotiated with
distributors, manufacturers, or suppliers of products, parts, supplies, or materials used for
vehicle repair may not be imposed on a motor vehicle repair shop new text end .