Introduced Version
Senate Bill 34 History
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Key: Green = existing Code. Red = new code to be enacted
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.