Illinois House passes bill that regulates auto glass claims
The Illinois House passed a bill to regulate auto glass claims and has sent it to the Senate.
It is one of five states that have filed a bill based on the National Council of Insurance Legislators’ (NCOIL) model legislation. Other states include Louisiana, 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) opposes the bill and warns that it could harm consumers, reduce choice, and further consolidate the auto glass market.
“HB 4373 is not about consumer protection, it is about control,” said Gary Hart, IGA executive director, in a press release issued when the bill was introduced. “This bill follows the same NCOIL template that is being promoted nationwide by the Safelite Group and their insurance partners to tighten their grip on the auto glass claims process. It is being sold to lawmakers under the false premise of widespread auto glass fraud, a problem that simply does not exist.”
HB4373 requires glass repair shops to notify the insured if their vehicle is ADAS-equipped, whether calibration is necessary, and whether the shop will calibrate to OEM specifications or, instead, send it to a qualified specialist capable of performing the calibration.
If a calibration is performed, the shop would be required to provide written notice to the insured on the outcome of the calibration and if it should be taken to a qualified specialist. It also should provide an itemized invoice.
The bill would prohibit a shop from contracting with a person for a repair until a claim is made under their insurance policy, the shop has received a claim or referral number, and has provided a good-faith estimate.
Shops would also be required to provide an updated estimate before performing services or charging more than reasonable and customary fees and costs.
The bill would prohibit repair shops from being compensated for soliciting insurance claims, such as offering a rebate, gift, gift cards, cash, coupon, fee, prize, bonus, payment incentive, inducement, or any other thing of value to the insured, insurance producer, or a person.
IGA says it has reviewed thousands of shop complaints, consumer reports, and claim records nationwide, including in Illinois, that don’t support alleged systematic fraud by independent glass businesses.
Issues that are consistent in the review include scripted steering at the first notice of loss and automated claim routing, the release says. It also includes undisclosed ownership and financial conflicts between insurers, TPAs, and preferred glass providers.
Safety risks are created when cost pressures override OEM and ADAS calibration requirements, the release says.
The release asks for amendments to the bill that would preserve consumer choice at first notice of loss, prevent steering, require conflict of interest disclosures, ensure fair, market-based reimbursement, and protect OEM and ADAS safety requirements.
It also asks that enforcement be applied equally between TPAs and repair facilities.
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