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

H.F No. 2570, as introduced: 82nd Legislative Session (2001-2002) Posted on Nov 5, 2001

  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             appropriating money; amending Minnesota Statutes 2000, 
  1.6             section 72A.201, subdivision 6; repealing Minnesota 
  1.7             Statutes 2000, section 72A.202. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  Minnesota Statutes 2000, section 72A.201, 
  1.10  subdivision 6, is amended to read: 
  ----------
  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.  If the insurer disputes the amount 
  5.5   charged by the vendor, the price shall be as established by the 
  5.6   commissioner through a market survey to determine a fair and 
  5.7   reasonable market price for similar services.  The survey shall 
  5.8   be: 
  5.9      (a) an annual survey using accepted industry standards; 
  5.10     (b) a statistically significant sample of auto glass 
  5.11  vendors; and 
  5.12     (c) of work actually done. 
  5.13  The commissioner shall consult with interested parties in 
  5.14  designing the survey document.  Reasonable deviation from the 
  5.15  market price determined by survey is allowed when based on the 
  5.16  facts in each case.  This clause does not prohibit an insurer 
  5.17  from recommending a vendor to the insured or from agreeing with 
  5.18  a vendor to perform work at an agreed-upon price, provided, 
  5.19  however, that before recommending a vendor, the insurer shall 
  5.20  offer its insured the opportunity to choose the vendor; 
  5.21     (15) requiring that the repair or replacement of motor 
  5.22  vehicle glass and related products and services be made in a 
  5.23  particular place or shop or by a particular entity, or by 
  5.24  otherwise limiting the ability of the insured to select the 
  5.25  place, shop, or entity to repair or replace the motor vehicle 
  5.26  glass and related products and services; or 
  5.27     (16) engaging in any act or practice of intimidation, 
  5.28  coercion, threat, incentive, or inducement for or against an 
  5.29  insured to use a particular company or location to provide the 
  5.30  motor vehicle glass repair or replacement services or products.  
  5.31  For purposes of this section, a warranty shall not be considered 
  5.32  an inducement or incentive. 
  5.33     Sec. 2.  [REPEALER.] 
  5.34     (a) Minnesota Statutes 2000, section 72A.202, is repealed. 
  5.35     (b) Any funds remaining in the account enacted in Minnesota 
  5.36  Statutes, section 72A.202, must be refunded on a proportionate 
  6.1   basis to the entities that voluntarily contributed to it, as 
  6.2   determined by the commissioner of commerce.  Those funds are 
  6.3   appropriated to the commissioner for that purpose. 
  6.4      Sec. 3.  [EFFECTIVE DATE.] 
  6.5      Sections 1 and 2 are effective August 1, 2002.  Section 1 
  6.6   applies to motor vehicle policies issued or renewed on or after 
  6.7   that date.