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 Auto Glass Legislation & Insurance News 

April 1, 2002

Minnesota HF No. 2570 Goes Into Effect

Bill Text Listed Below:

For 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.

Also See:

 This Bill's Original Text as Introduced

 This Bill's 1st Engrossment (re-write)

 Minnesota Governor Ventura Vetoes Bill HF No. 2570

 Minnesota Legislature Overides Ventura Veto
 
 

source:  State of Minneosta