SANTA ROSA, Calif. — The Collision Repair Association of California (CRA) is calling on repairers in California to rally around S.B. 1167 which it calls “truth-setting policy” that protects consumers from insurer Customer Repair Program (CRP) steering tactics.
The bill, authored by State Senator Pat Wiggins (D-Santa Rosa) and sponsored by the CRA, states that when a claimant first reports an accident, the insurer would be required to ask if the claimant had selected a repairer. The bill then ties into current law that directs insurers not to recommend or suggest alternative repair choices when the claimant has selected a repairer. The bill is tentatively set for hearing on April 2 in the Senate Committee on Banking, Finance and Insurance. “The battleground is S.B. 1167 and the insurance industry is leading with its ‘head,’ ” states Allen Wood, CRA executive director. He noted that insurers are opposing the bill because it wouldn’t allow them to explain the benefits of DRPs. “By opposing the bill insurers are admitting they currently violate the law which protects consumer choice by not allowing an insurer to suggest or recommend an alternative shop to claimants who have already selected a repairer. I’m calling on collision repairers everywhere to support a knockout blow on insurer steering tactics,” says Wood. CRA lobbyist Richard Steffen said the bill will be in final form after clarifying amendments are added to the measure. He states, “We aren’t changing the message, only simplifying it. The insurers are calling S.B. 1167 an ‘anti-consumer’ bill while CRA says the measure is ‘pro-consumer.’ Someone is wrong. S.B. 1167 is truly truth-setting policy.” Steffen noted insurer representatives like to “clobber” claimants with DRP rhetoric before claimants have an opportunity to state that they have already selected a repairer. As drafted, the CRA bill will require the insurer to ask the claimant about a repair choice before proceeding with a discussion of DRPs. If the claimant affirms that a choice has been made, then no DRP talk would be allowed. For additional information, visit www.cra-ca.com. |