Legislation that would prohibit the assignment of benefits (AOB) and regulate auto glass replacement has been introduced in Iowa.
Iowa Senate Study Bill 1192 follows the pattern of AOB laws recently enacted in Florida and Kentucky and the a model bill from the National Council of Insurance Legislators. It prohibits consumers from signing over their insurance benefits to an auto glass shop or a shop offering an incentive for them to do so, though it also protects a consumer’s right to choose which shop to use.
Like the legislation in other states, it requires auto glass businesses to tell their customers if their vehicle will require recalibration after a replacement. The bill would also regulate how much a shop can charge for their services and prohibits a number of fraudulent practices.
“A shop shall not … charge unreasonable fees or costs to an insured person for repairing or replacing damaged motor vehicle glass,” the Iowa bill says. “A fee that exceeds an amount customarily charged for such service is unreasonable.”
An auto glass business would have to verify that “the insured person has made a first-party claim.
Violators could receive a hefty consequence for breaking the potential law’s regulations.
“A person who violates a provision of the bill is subject to entry of a cease and desist order, may be ordered by the commissioner of insurance to pay a civil penalty ranging from $1,000 to $50,000 under [state law], and if the person has a license to operate the person’s business, the license is subject to suspension or revocation,” the bill says.
The bill was introduced on February 26 and was has assigned to the Senate Commerce Committee for consideration. A subcommittee reviewed the bill on March 4 and recommended passage to the full committee. The Safelite Group filed testimony in support of the legislation.
is that so it is forced to go through Lynx or SGC or any other 3rd party so they can get their cut? who both of these and I am sure others, you can’t get anyone on the phone, its all by email, responses are days after the response is needed.
who refuse to work with the insurance companies to see the items we are turning in for example aftermarket tint and refuse to pay market pricing for?
it is being made where legit glass shops are going to stop doing any work for insurance, which could be the goal for them to feed safelite glass. FED UP WITH INSURANCE COMPANIES.
Big corporations and big government team up again to crush the little guy. Sure there are nefarious small shops but SGC is the head of the snake. Anything with Blacrock backing should be cautiously observed.