“Florida” Auto Glass Bill Moves Toward Passage in Kentucky

Kentucky legislation, similar to the law enacted in Florida last year, passed the Kentucky State Senate on February 16 and has moved out of a House Committee to consideration on the House floor.

The bill, S.B. 29, sponsored by Senator Brandon Storm, prohibits the assignment of benefits for auto glass repair and replacement and the offering of “anything of value” to solicit glass-related insurance claims.

The bill imposes consumer information requirements on auto glass businesses, including specific information regarding auto glass repair or replacement calibration. It prohibits auto glass services companies from engaging in various fraudulent practices.

Under the legislation, Kentucky would end the practice of assignment of benefits for auto glass claims and, therefore, curtail the litigation that results from that practice. The bill also seeks to end the widespread solicitation of auto glass claims by prohibiting shops from offering rebates, gift cards, cash, or “any other thing of value” for those claims.

However, unlike the 2023 Florida law, Kentucky would strictly continue as a zero deductible state for auto glass repair and replacement.

The Kentucky Senate Banking and Insurance Committee passed a substitute version of the bill initially introduced on February 13 after a very brief legislative hearing at which Senator Storm testified flanked by Kentucky Farm Bureau Insurance officials. The substitute version, which the full Senate subsequently passed, included several clarifying provisions and added a reference to the most recent version of the SAE International’s SAE J3016 Levels of Driving Automation into the “Advanced Driver Assistance System” definition. On February 21, the House Banking and Insurance Committee passed a substitute version of the bill that passed the Senate amending some insurance-related provisions—that version is up for consideration on the House floor.

The bill explicitly also allows an insured to use a glass services company of their choice but also expressly will enable insurers to maintain a network of glass services shops.

The bill includes “calibrating or recalibrating an advanced driver assistance system when an incident requires the replacement of damaged motor vehicle glass” in the definition of repair or replacement of damaged motor vehicle glass.

To contract for services with a customer, a glass shop will have to obtain the customer’s insurance claim number or waiver of an insurance claim, notify the customer whether the vehicle has ADAS, and whether the ADAS will be recalibrated in a manner that makes the ADAS operable.

The shops must also provide an invoice with an estimate of fees, the shop’s standard rates for glass work, and a statement that the shop is prohibited under Kentucky law from charging more than is “reasonable and customarily charged in Kentucky.”

The bill also prohibits glass shops from committing a variety of fraudulent practices or making false statements to the customer or the insurance company about such items as the geographic location and date of the repair/replacement work or that the work will be fully covered by insurance if that is not the case.

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