Florida’s SB 1002, which prohibits policyholders from entering into assignment of benefits (AOB) agreements for AGRR work, was approved by the House after its third reading on Tuesday, May 2. Unless vetoed by the governor, Floridians with insurance policies starting or renewed on or after July 1, 2023, won’t be able to utilize AOB agreements for AGRR work.
SB 1002, introduced by Sen. Linda Stewart, prohibits companies from offering “items of value” to customers for making insurance claims for glass replacements and repairs. It also prohibits consumers from entering into AOB agreements for re-calibrations as well as auto glass repairs and replacements.
Additionally, insurers will be required to offer “actuarially sound discounts” to insureds if they accept the insurer’s offer of a policy with a repair agreement. That means Florida is no longer a zero-deductible state, as insurance companies will be able to offer policies with deductibles for glass.
Shops will also be required to notify customers when calibrations are necessary as part of the windshield repair and replacement process. SB 1002 passed by a vote of 103-16 and now heads to the governor’s desk.
The owner of one independently-owned auto glass repair and replacement shop in Florida, who wishes to remain anonymous, says they aren’t surprised at the passage of SB 1002. While the measure may remove some of Florida’s bad actors, they say its true impacts on the industry may not be realized for months.
“It’s going to be kind of a waiting game,” the owner says. “If they think they’re going to just be able to pay what they want to pay, that’s not going to cut it. You cannot run a legitimate business at what some of these insurance companies want to pay. There’s no way you can afford insurance, training and payroll.”
HB 541, the companion legislation to SB 1002, was tabled by the House on May 1, 2023. It would have barred shops from offering incentives in exchange for making an insurance claim for automotive glass repairs, replacements and recalibrations. Shops would have been required to notify customers when recalibrations are required as part of auto glass repairs and replacements.
Additionally, the bill would have allowed auto insurance companies to offer $250 deductibles when issuing or renewing comprehensive coverage. However, the insureds would have had the right to decline that offer.