Washington files NCOIL motor vehicle glass bill

Washington is following other states in filing a bill that regulates how auto glass claims can be filed and handled, including claims that involve ADAS features. 

The bill is crafted after the National Council of Insurance Legislators (NCOIL) Motor Vehicle Glass Act Model. New York passed a similar bill in December. Arizona, Florida, Kentucky, Maryland, and Utah have also passed bills. 

The Independent Glass Association (IGA) has released a rebuttal to the Vehicle Glass Act Model, saying that the act unfairly favors insurers, restricts consumer choice, and threatens the viability of independent glass businesses. 

Senate Bill 5871 was filed Dec. 11 and referred to the Business, Trade, and Economic Development Committee Jan. 12. 

If passed, the bill would restrict the insured under an insurance policy from assigning, delegating, or otherwise transferring, in whole or part, the duties under the policy, rights, or benefits, either before or after a claimed or covered loss. Any contract entered into in violation of it would be void and unenforceable. 

A motor vehicle glass shop would be required to notify the insured if the vehicle has an ADAS feature before providing service, the bill says. The shop would be required to notify the insured if a calibration is needed, as recommended by the OEM, and if the shop will calibrate the vehicle to OEM specifications. 

If the shop is not capable of performing the calibration, the vehicle should be taken to a certified dealership or a qualified specialist, the bill says. 

Once a calibration is complete, a shop must provide written notice to the insured and include information about whether it was successful. If unsuccessful, the insured should be instructed to take it to a certified dealership or qualified specialist and be advised not to rely on the ADAS until it is calibrated. 

The bill restricts shops from contracting with another person for the repair or replacement of glass to be paid under a first-party insurance policy until the person has made the claim for the repair, the shop has received the claim, and the shop has provided a good-faith estimate of the fees and costs. 

Before performing services, an updated estimate must be provided with charges that are not more than the reasonable and customary fees and costs, the bill says. After the repair is completed, an itemized invoice should be provided upon payment, and a written notice stating whether the ADAS feature was successfully calibrated. 

Shops would also be restricted from offering a rebate, gift, gift card, cash, coupon, fee, prize, bonus, payment, incentive, indictment or any other thing for value to an insured, insurance producer, or other person in exchange for directing or making a claim under a motor vehicle insurance policy for a repair or replacement of damaged motor vehicle glass. 

An insured that makes a first-party claim for repair or replacement of glass will not be required to use a particular motor vehicle glass repair shop to receive claim payments or other benefits, the bill says. The bill would prohibit an insurer, insurance producer, insurance adjuster, or any person acting on behalf of the insurer, insurance producer, or insurance adjuster from recommending a motor vehicle glass repair shop or providing an explanation to an insured of the coverage available and any applicable liability limit. 

The bill says the commissioner may adopt rules as necessary, including penalties applicable to shops. 

IGA says the NCOIL model allows insurers to dictate pricing structures and steering mechanisms that favor their preferred networks, limiting consumer freedom in choosing a service provider. 

“By enabling insurers to set reimbursement rates without proper negotiation, independent glass shops are forced to accept below-market compensation, threatening their Sustainability,” IGA says in their rebuttal. 

It adds that the act “appears to support steering,” which would reduce competition and consumer options.

Safety and quality concerns are another issue with the model, the rebuttal says. 

“Independent glass shops adhere to strict safety regulations and OEM guidelines, which may not be a priority for cost-cutting insurer networks,” the rebuttal says. “Any model legislation should prioritize consumer safety over insurer cost savings.”

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