Connecticut General Assembly to Review Amendments to Auto Insurance Statutes

Last week, the Connecticut General Assembly voted to send a bill to the Committee on Insurance and Real Estate, which would change the wording of two existing statutes regarding auto insurance claims payments.

The first proposed amendment contains an addition to the existing statute stating the means by which an insurance company can pay an auto insurance claim for damages to a vehicle. The addition to the bill, if passed, would require an insurer, holding company of an insurer, or a wholly owned subsidiary of an insurer to charge a "usual and customary rate" for labor. In the bill "usual and customary rate" is defined as, "the labor rate that the general public commonly pays for similar repairs on similar motor vehicles in the same geographic area of the state."

The second proposed amendment would change the wording of an existing statute from "No automobile physical damage appraiser shall require that appraisals or repairs should or should not be made in a specified facility or repair shop or shops" to read, "No automobile physical damage appraiser shall request or require…" the addition would also require the appraiser to post a notice alerting the customers of their right to select the auto repair facility of their choice.

The proposed bill also provides a detailed definition of "request or require" as "any act to influence a consumer's decision including, but not limited to, (1) reducing the amount of deductible or premium or offering additional warranties if the consumer chooses a preferred repair facility, or (2) suggesting that choosing a facility other than a preferred repair facility will result in delays in repairing the motor vehicle, a lack of guaranty for repair work or additional costs to the insured."

CLICK HERE to read the legislation in its entirety.

CLICK HERE to read about similar legislation pending in Washington State.