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Wednesday, 12 December 2007 |
Insurance Commissioner to Consider New Steering Rules
On December 11, 2007 Department of Insurance counsel Bill Gausewitz stated that if representatives for collision repairers and insurers can’t resolve their conflicts over steering practices, regulations may be in order. In fact, he’s asked both sides to draft their versions of how the rules should read.
The purpose of any regulation is to provide a clearer understanding of a state law passed by the legislature and signed by the governor. Gausewitz cautioned that any rule change might have unintended consequences, that is, it could lead to new forms of steering not currently anticipated. The CRA took this warning to mean that the department believes it will be difficult to fashion clarifying steering language. |
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Wednesday, 12 December 2007 |
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The following is intended as a reminder to changes that were made to Section 9884.9 of the Business and Professions Code and the California Code of Regulations. |
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Wednesday, 12 December 2007 |
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Minnesota’s decision to penalize an insurer $20,000 for capping paint and materials was hand-delivered by the Collision Repair Association of California to Insurance Commissioner Steve Poizner along with a December 11, 2007 letter asking for similar action be taken in California. The CRA is asking the commissioner to inform all insurers of their obligation to pay the itemized cost of paint and materials and to penalize those insurers who arbitrarily cap payments. The CRA noted that the department held a workshop in August 2007 where insurer representatives were clearly told that they may not arbitrarily cap the repairer’s cost of paint and materials. |
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Wednesday, 12 December 2007 |
The Collision Repair Association of California (CRA) is a non-profit, mutual benefit corporation consisting of auto repair professionals (members) committed to improving the industry.
In May 2006 investigators William Neu and Eugene Kendall of the Bureau of Automotive Repair (BAR) conducted an inspection of the Progressive Insurance Concierge Service Center, 4141 Ruffin Road, San Diego, California. |
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Wednesday, 12 December 2007 |
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The Department of Insurance is hinting that it may consider adopting rules to bolster its finding that “it is not reasonable for an insurer to pay DRP rates for non-DRP work.” The CRA’s November 30, 2007 Newsletter carried the department’s finding which serves to clarify the cornerstone issue in disputes between insurers and repairers; i.e. insurers must pay the reasonable cost of repairs. |
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