A trade body representing Michigan automotive service providers has asked Senator Joe Hune to push through another bill limiting insurers’ prerogatives in direct repair program shops.
Hune has filed Senate Bill 291, which is similar to a 2015 version, Senate Bill 430, save for one proviso: “An insurer shall not require, directly or indirectly, through a contract, program, or policy, a person that operates an automobile repair facility to use a specific vendor or process for the procurement of parts or other materials.”
Repairer Driven News reported that, if signed by Governor Rick Snyder, the law would take effect after 90 days.
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The Automotive Service Association of Michigan (ASAM) has requested legislation to curb the practice of some insurers of compelling repair shops to adopt specific procurement systems - as in the case of
State Farm, which favours PartsTrader; and American Family, which leans towards Solera’s APU.
However, ASAM executive director Ray Fisher said that their sentiment is not a reflection of a bias against these systems, but rather “a response to insurers overstepping their jurisdiction.”
Furthermore, Fisher told the
Repairer: “We feel that it should be a free marketplace.”
Hune chairs the Senate Insurance Committee, which received the proposed law last week.
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