ASA to Address Parts Procurement Mandates at State Level
Jan. 20, 2014—With several 2014 state legislative sessions now underway, the Automotive Service Association (ASA) has started to address issues surrounding insurance parts procurement mandates on state levels, according to a recent press release.
The ASA has contacted several state attorneys general and insurance regulators to conduct reviews of mandated parts procurement programs to determine whether they violate laws in their respective states.
The ASA said a few U.S. states introduced bills in 2013 to stop insurer mandated parts procurement programs, but none of the bills advanced into law. The organization said it has been working with independent repairers and state affiliate associations that have taken an active role in addressing the insurer parts procurement mandates on a state level, and anticipates that “2014 will see more legislative activity on parts procurement and other similar insurer mandates.”
“Our goal was to resolve this issue without government oversight, interference or legislation,” said Dan Risley, executive director of the ASA. “As such, we have persisted in our efforts to work with State Farm to change the current PartsTrader mandate policy. This has included multiple meetings and other discussions that continued throughout 2013. ASA believes that there are potential solutions provided State Farm is willing to work toward an amicable resolution that benefits State Farm, collision repairers and the consumer.”
For more information regarding the ASA’s insurance parts procurement actions, visit its legislative website.