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informational purposes, only the section(s) pertaining to Auto Glass
Listed
KEY:
stricken = old language to be removed
underscored = new language to be added
H.F No. 2570, 2nd Engrossment: 82nd Legislative Session
(2001-2002) Posted on Mar 20, 2002
(14) if an automobile policy provides for the adjustment or
settlement of an automobile loss due to damaged window glass,
failing to provide payment to the insured's chosen vendor based on
a competitive price that is fair and reasonable within the local
industry at large. If the insurer disputes the amount
charged by the vendor, the price shall be as established by the
commissioner through a market survey to determine a fair and
reasonable market price for similar services. The survey shall
be: (a) an annual survey using accepted industry
standards; (b) a statistically significant sample of
auto glass vendors; and (c) of work
actually done. The commissioner shall consult with
interested parties in designing the survey document.
Reasonable deviation from the market price determined
by survey is allowed when based on the facts in each
case. Where facts establish that a different rate
in a specific geographic area actually served by the vendor is
required by that market, that geographic area must be
considered. This clause does not prohibit an insurer
from recommending a vendor to the insured or from agreeing
with a vendor to perform work at an agreed-upon price,
provided, however, that before recommending a vendor, the
insurer shall offer its insured the opportunity to choose the
vendor. If the insurer recommends a vendor, the
insurer must also provide the following advisory:
"Minnesota law gives you the right to go to any glass
vendor you choose, and prohibits me from pressuring you to
choose a particular vendor."; (15) requiring
that the repair or replacement of motor vehicle glass and related
products and services be made in a particular place or shop
or by a particular entity, or by otherwise limiting the
ability of the insured to select the place, shop, or entity
to repair or replace the motor vehicle glass and related
products and services; or (16) engaging in any act or practice of
intimidation, coercion, threat, incentive, or inducement for
or against an insured to use a particular company or location to
provide the 6.2 motor vehicle glass repair or replacement services
or products. For purposes of this section, a warranty shall not be
considered 6.4 an inducement or incentive. Sec. 2. Minnesota
Statutes 2000, section 325F.783, is amended to read:
325F.783 [AUTO GLASS REPAIR OR REPLACEMENT.] 6.8 (a) No person who
provides retail auto glass products or services paid for in
whole or in part, directly or indirectly, by an insurer
regarding an insurance claim may: (1) waive, forgive, or pay
all or any part of an applicable insurance deductible;
or (2) as an inducement to the sale of goods or services to
an insured, advertise or give any rebate, gift, prize,
bonus, coupon, credit, referral fee, trade-in or trade-in
payment, advertising or other fee or payment, or any other
tangible thing or item of monetary value, directly or
indirectly, to an insured or any other person not in the
employ of the seller that has a value of more than
$35. Any permissible inducement must be given within
seven business days of the completion of the work and
must have a redeemable cash value of no more than 50 percent of
the retail value of the inducement offered. (b) The
attorney general may pursue the penalties and remedies
available to the attorney general under section 8.31 against
any person who violates this section.
Sec. 3. [REPEALER.] Minnesota Statutes 2000, section
72A.202, is repealed.
Sec. 4. [Mar. 28, 2002] This act is effective the day
following final enactment.
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