The Property Casualty Insurers Association of America (PCI) is
challenging
the constitutionality of Rhode Island's Anti-Steering Act,
which prohibits
auto insurers from recommending body shops to customers and
third-party
claimants after they have selected a repair shop.
PCI sued the state's Director of Business Regulation Paul
McGreevy and
Attorney General Peter Kilmartin in Federal Court.
Rhode Island's Anti-Steering Act states: "The insured or
claimant shall
be promptly informed by the insurer of his or her free choice
in the
selection of an auto body repair shop. Once the insured or
claimant has
advised the insurer that an auto body repair shop has been
selected, the
insurer may not recommend that a different auto body repair
shop be selected
to repair the automobile." Click here to see the state's insurance bulletin.
PCI said, "This ban interferes with the ability of the
insurer not only
to communicate with claimants generally, but also communicate
with their
customers, the insureds, regarding repair options and benefits
that these
insureds have paid for through insurance premiums, thereby
unconstitutionally prohibiting truthful commercial speech
related to a
lawful activity."
In 2005, Rhode Island expanded on its Anti-Steering Act by
saying that
insurers must promptly inform insured parties of their free
choice in
selecting an auto repair shop, and soon after ask claimants if
they have
selected a shop, according to Courthouse News.
To see the entire article, click on Courthouse News.
