ASA responds to California proposed insurance regulation

WASHINGTON, D.C. —The California Department of Insurance (DOI) held hearings to discuss proposed amendments to the California Insurance Code relating to Direct Repair Programs and Labor Rate Surveys and Additional Standards for Auto Body Repair Labor Rate Surveys. The Automotive Service Association (ASA) reviewed the proposed regulatory changes and submitted comments to the Department of Insurance. ASA responded to the DOI in a letter stating that ASA "generally supports" the proposed regulatory changes.

ASA specifically commented on the Additional Standards for Auto Body Repair Labor Rate Surveys subsections. One proposed change "ensure[s] that repair facilities, which may not be duly licensed by the Bureau of Automotive Repair, should not be used in the survey." ASA agrees that non-licensed shops should not be used in the survey, but insurers should be responsible for verifying the license status of participating shops.

ASA is supportive of collision shop licensing and that strict equipment and training guidelines should be included in all licensing programs. Therefore, ASA agrees with the proposed regulatory change that states "shops that do not meet certain standards shall not be used in a labor rate survey." In ASA's reply, the letter states: "Specifically, that stringent equipment and training criteria should be included in any licensing program. The equipment standards listed for shop survey participation covers the majority of ASA's equipment concerns but not the training component. Requiring I-CAR or other equivalent training for shop staff should be part of the standard criteria."

For more information, visit www.asashop.org.