KEY:
stricken = old language to be removed
underscored = new language to be added

H.F No. 2570, 1st Engrossment: 82nd Legislative Session (2001-2002) Posted on Feb 13, 2002

  1.1                          A bill for an act 
  1.2             relating to insurance; providing that automobile 
  1.3             insurance may cover damage to automotive glass on the 
  1.4             same basis as damage to other parts of an automobile; 
  1.5             amending Minnesota Statutes 2000, section 72A.201, 
  1.6             subdivision 6; repealing Minnesota Statutes 2000, 
  1.7             section 72A.202. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
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  5.1      (14) if an automobile policy provides for the adjustment or 
  5.2   settlement of an automobile loss due to damaged window glass, 
  5.3   failing to provide payment to the insured's chosen vendor based 
  5.4   on a competitive price that is fair and reasonable within the 
  5.5   local industry at large.  Where facts establish that a different 
  5.6   rate in a specific geographic area actually served by the vendor 
  5.7   is required by that market, that geographic area must be 
  5.8   considered.  If the insurer disputes the amount charged by the 
  5.9   vendor, the price shall be as established by the commissioner 
  5.10  through a market survey to determine a fair and reasonable 
  5.11  market price for similar services.  The survey shall be: 
  5.12     (a) an annual survey using accepted industry standards; 
  5.13     (b) a statistically significant sample of auto glass 
  5.14  vendors; and 
  5.15     (c) of work actually done. 
  5.16  The commissioner shall consult with interested parties in 
  5.17  designing the survey document.  Reasonable deviation from the 
  5.18  market price determined by survey is allowed when based on the 
  5.19  facts in each case.  This clause does not prohibit an insurer 
  5.20  from recommending a vendor to the insured or from agreeing with 
  5.21  a vendor to perform work at an agreed-upon price, provided, 
  5.22  however, that before recommending a vendor, the insurer shall 
  5.23  offer its insured the opportunity to choose the vendor.  The 
  5.24  insurer must not recommend a vendor to the insured unless 
  5.25  requested by the insured; 
  5.26     (15) requiring that the repair or replacement of motor 
  5.27  vehicle glass and related products and services be made in a 
  5.28  particular place or shop or by a particular entity, or by 
  5.29  otherwise limiting the ability of the insured to select the 
  5.30  place, shop, or entity to repair or replace the motor vehicle 
  5.31  glass and related products and services; or 
  5.32     (16) engaging in any act or practice of intimidation, 
  5.33  coercion, threat, incentive, or inducement for or against an 
  5.34  insured to use a particular company or location to provide the 
  5.35  motor vehicle glass repair or replacement services or products.  
  5.36  For purposes of this section, a warranty shall not be considered 
  6.1   an inducement or incentive. 
  6.2      Sec. 2.  [REPEALER.] 
  6.3      Minnesota Statutes 2000, section 72A.202, is repealed. 
  6.4      Sec. 3.  [EFFECTIVE DATE.] 
  6.5      Sections 1 and 2 are effective the day following final 
  6.6   enactment.