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Introduced Version Senate Bill 34 History

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Senate Bill No. 34

(By Senators Jenkins and McCabe)

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         [Introduced February 13, 2013; referred to the Committee on Banking and Insurance; and then to the Committee on the Judiciary.]                            

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A BILL to amend and reenact §33-6D-1, §33-6D-2 and §33-6D-3 of the Code of West Virginia, 1931, as amended, all relating to use of particular companies or locations providing automobile glass replacement or repair services; adding third-party administrators to those who may not require particular companies or locations when a claim is made under an insurance policy; adding third-party administrators to the list of insurers, agents and adjusters; providing that an insurer or third-party administrator that has a financial interest in an automobile glass company on a recommendation list must disclose that fact on the list of names of automobile glass companies or locations that are reasonably close and convenient to the insured or claimant ; and providing that the list must contain at least two different automobile glass companies .
Be it enacted by the Legislature of West Virginia:
    That §33-6D-1, §33-6D-2 and §33-6D-3 of the Code of West Virginia, 1931, as amended, be amended and reenacted, all to read as follows:
ARTICLE 6D. MOTOR VEHICLE REPAIR AND REPLACEMENT REFERRALS.
§33-6D-1. Required use of particular companies or locations providing automobile glass replacement or repair services or products prohibited.
     No insurer issuing or renewing in this state any a motor vehicle insurance policy, nor any agent, or adjuster or third-party administrator thereof, may require the insured or any a person making a claim under such policy to use a particular company or location to obtain automobile glass replacement or repair services or products insured, in whole or in part, by that policy.
§33-6D-2. Intimidation, coercion and other acts prohibited; permissive agreements.
                                            No such insurer, agent, or adjuster or third-party administrator
may engage in any act or practice of intimidation, coercion or threat for or against any such insured or claimant to use a particular company or location to obtain automobile glass replacement or repair services or products covered, in whole or in part, by the insurance policy: Provided, That nothing contained in this article shall prohibit an insurer, agent, or adjuster or third-party administrator from entering into an agreement or arrangement with any company regarding automobile glass prices or services for the repair or replacement of automobile glass.
§33-6D-3. Permissible referrals; freedom of choice; payment of costs at prevailing market rates.
                                            (a) Nothing contained in this article prohibits any insurer, agent, or adjuster or third-party administrator
from providing to an insured or claimant a list that includes the names of automobile glass companies or locations that are reasonably close and convenient to the insured or claimant, and with which the insurer may have made special arrangements with respect to automobile glass prices or services. An insurer or third-party administrator that has a financial interest in an automobile glass company on such list must disclose such fact on the list. A list must contain at least two different automobile glass companies.
                                            (b) If an insurer, agent, or adjuster or third-party administrator
provides an insured or claimant with a list of automobile glass companies or locations, such insurer, agent, or adjuster or third-party administrator shall advise the insured or claimant that he or she may use any other automobile glass company or location of his or her choice.
                                            (c) All insurers shall fully and promptly pay the cost of automobile glass replacement or repair services or products from any nonlisted automobile glass company or location, less any applicable deductible amount payable by the insured according to the terms of the insurance policy, at no less than the prevailing market price charged by other automobile glass companies or locations providing comparable services or products in the same geographic area within the state.
                                            (d) No automobile glass company or location may waive insurance deductibles or offer rebates, discounts or other incentives for automobile glass repair which is being reimbursed by insurance. An insurer may limit payment of all glass claims to a glass company or location that has violated this provision to the lowest competitive price. The glass company or location may not seek reimbursement for any amounts not paid directly from the insured or claimant.


                                            NOTE: The purpose of this bill is to add third-party administrator to those who may not require particular companies or locations to replace glass or perform repairs on automobiles when a claim is made under an insurance policy. The bill requires an insurer or third-party administrator that has a financial interest in an automobile glass company on a recommendation list must disclose that fact on the list. The bill also requires that the list of names of automobile glass companies that are reasonably close and convenient to the insured or claimant must contain at least two different automobile glass companies.


                                            Strike-throughs indicate language that would be stricken from the present law, and underscoring indicates new language that would be added.
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