Louisiana newest state to file NCOIL auto glass bill
Louisiana is the newest state to file a bill that regulates auto glass claims, including those that involve ADAS features.
It is the fifth state this year to file a bill based on the National Council of Insurance Legislators’ (NCOIL) model legislation. Other states include Illinois, Virginia, Washington, and South Carolina. 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.
The Louisiana bill, HB 929, was filed Feb. 27 by Rep. Gabe Firment (R-District 22) and has been referred to the Committee on Insurance.
It would restrict repair shops from offering a benefit to any insurance producer or other person in exchange for directing or making a claim under an insurance policy.
Language in the bill also bans shops from “performing work that is clearly and substantially beyond the level of work necessary to restore a vehicle to a safe pre-damaged condition in accordance with accepted or approved reasonable and customary techniques for the repair or replacement of a damaged motor vehicle glass.”
Similar to other NCOIL bills, glass repair shops would have to provide written notification to insureds regarding ADAS systems. The notifications would include whether a calibration is needed as recommended by the OEM and whether the shop intends to calibrate the vehicle per OEM specifications.
It would also require consumer notification when their vehicle should be taken to a certified dealership or qualified specialist capable of performing the calibration.
A good-faith estimate of the fees and costs anticipated would be required before performing a calibration. An itemized invoice for the completion of the glass calibration would also be required.
IGA says the NCOIL model allows insurers to dictate pricing structures and steering mechanisms that favor their preferred networks, limiting consumer freedom of choice.
“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,” and 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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