Alabama Bill Encourages Consumer Choice; Excludes Glass from Provisions

Rep. H. Mac Gipson (R-Ala.) has introduced a bill in Alabama's state legislature that would prohibit an insurer from requiring that repairs be performed by a specific repair shop and would provide penalties for violations of this law. However, the bill, HB 63, excludes automotive glass work (that doesn't involve other damage to the vehicle) from the law.

The wording of the bill reads as follows:

"Under existing law, an insurance company that provides insurance coverage for a motor vehicle is not expressly prohibited from directing an insured to a particular body shop for damage repair. This bill would expressly prohibit an insurer from requiring as a condition of payment of a claim that repairs be performed by a specific repair shop and would provide penalties for violations."

The bill continues as follows, with relation to glass specifically: "In processing a claim for damage or loss to a motor vehicle other than a claim solely involving window glass, unless expressly requested by the insured, an insurer shall not recommend or suggest that repair be made by a particular contractor or motor vehicle repair shop."

If passed, the bill would mandate that insurers who violate this act will be guilty of a Class A misdemeanor and will be subject to "a private right of action the same as for any violation of the Deceptive Trade Practices Act."

The bill was introduced on Tuesday, February 5, and was referred to the Banking and Insurance Committee. Rep. Gipson was not available for comment this afternoon.

CLICK HERE for the full text of the bill.

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