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AZ SB1424
Bill
Status
2/12/2018
Primary Sponsor
David Farnsworth
Click for details
AI Summary
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Requires insurers to provide payment to policyholders' chosen auto glass vendors based on competitive, fair, and reasonable pricing within the local industry, with "fair and reasonable" defined as not more than 10% discount off benchmark pricing for parts and not less than $75/hour for labor.
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Mandates that if an insurer requires inspection of damaged auto glass before repair, the inspection must be conducted within 24 hours of claim filing and performed by a state-licensed adjuster employed by the insurer.
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Prohibits insurers and third-party administrators from using intimidation, coercion, threats, incentives, or inducements to pressure policyholders to use particular glass repair facilities, and prevents implying network provider work is superior or offers faster claims resolution.
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Expands unlawful auto glass repair practices to include offering rebates, gifts, or cash incentives exceeding $100 to induce customers to file claims.
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Clarifies that third-party administrators cannot recommend specific glass repair facilities when providing information about repair options, and establishes fines of $1,500 for second violations and $3,000 for subsequent violations within 18 months.
Legislative Description
Auto glass; repair; replacement; practices
Insurance - Title 20
Last Action
Senate COMPS Committee action: Held, voting: (0-0-0-0)
2/12/2018