May 19 Webinar: Understand the Conflict Between Insurance Laws and Consumer Protection Requirements
The Alliance of Automotive Service Providers of Illinois calls all Illinois legislators, consumer advocates, AASPI members, and collision shops to protect consumers and attend the free webinar “Understanding the Practical Impact of Conflicts Between Insurance Laws and Consumer Protection Requirements” at 12 p.m. on Monday, May 19.
Erica Eversman, J.D., from the Automotive Education & Policy Institute will lead the AASPI Business Impact Group workshop. State property/casualty insurance regulation intersects with several different areas including:
- Consumer protection laws
- Towing and storage regulation
- Federal and State warranty laws
- Service contracts
With the rise of “managed repair programs,” auto and homeowners insurers are materially encroaching into an area strictly governed by state and federal consumer protection regulations. Repairers participating in these programs might sometimes forget the consumer is the repair customer and cede control - and approval of the repair process - to the insurer. Insurers and repair professionals are knowledgeable about the repair plan development and performance of procedures or about the total loss process. Consumers are not.
Because insurers are typically exempt from the application of consumer protection laws, they often advocate for a repair or activity that the:
- Repairer may not legally perform
- Places the safety of the consumers at risk
This tension between what insurers are permitted to do and what repair providers are not permitted to do creates unnecessary conflict that can be resolved by the appropriate legislation that considers the needs of consumers, insurers, and the repair industry.
Allowing insurers to make professional repair decisions without accepting the liability for them places consumers at significant risk. Insurers are seeking to or have already removed appraisal clause from policy, forcing lawsuits to recover the AVC.
Participating in the seminar will aid legislators to:
- Craft laws that fulfill the needs of all stakeholders.
- Analyze warranty laws that govern true warranties, compared with what have been improperly marketed to consumers as “extended warranties.”
- Understanding the Magnuson-Moss Warranty that clearly distinguishes warranties from insurance and service contracts.
- Drafting well-considered legislation that understands how consumers, repairers, and insurers are positioned and providing clear expectations for all participants that will enable smoother interactions among them.
For more information or to register, click here. AASPI asks attendees to consider a one-time donation, which helps raise funds to support its 2025 lobbyist expenses. If someone wants to be an event sponsor, select the option during registration. Event sponsors will be recognized by the AASPI at the beginning of the webinar.
