PRINTER'S NO. 1615
No. 1394 Session of 1995
INTRODUCED BY COLAFELLA, TRELLO, SAYLOR, M. COHEN, STABACK, COLAIZZO, TANGRETTI, COWELL, E. Z. TAYLOR, ITKIN, DeLUCA, SURRA, JOSEPHS, CIVERA, LAUGHLIN, YEWCIC, YOUNGBLOOD, BATTISTO AND MERRY, APRIL 20, 1995
REFERRED TO COMMITTEE ON INSURANCE, APRIL 20, 1995
AN ACT 1 Amending the act of July 22, 1974 (P.L.589, No.205), entitled 2 "An act relating to unfair insurance practices; prohibiting 3 unfair methods of competition and unfair or deceptive acts 4 and practices; and prescribing remedies and penalties," 5 providing for consumers' rights to choose who shall make 6 repairs to damaged vehicles. 7 The General Assembly of the Commonwealth of Pennsylvania 8 hereby enacts as follows: 9 Section 1. The act of July 22, 1974 (P.L.589, No.205), known 10 as the Unfair Insurance Practices Act, is amended by adding a 11 section to read: 12 Section 5.1. Consumers' Right to Choose.--(a) No insurer 13 providing collision or comprehensive coverage, and no agent or 14 adjuster or employee for an insurer, shall require that repairs 15 be made to a motor vehicle, including window glass repairs or 16 replacement, in a particular place or shop or by a particular 17 company. 18 (b) No insurer and no agent, adjuster or employee of an 19 insurer shall refer or recommend the use of a particular place
1 or shop or a particular company for the repair of a motor 2 vehicle or the repair or replacement of motor vehicle window 3 glass without clearly informing the claimant that the claimant 4 is under no obligation to use the referred or recommended repair 5 or replacement service. Any insurer providing a policyholder 6 with a list of places, shops or entities that repair motor 7 vehicles or that repair or replace motor vehicle window glass 8 also shall provide an oral and a written statement specifying 9 that the selection of the entity to perform the repair or 10 replacement is within the discretion of the insured, that the 11 insured may select an entity that is not on the list and that 12 the selection does not affect the obligation of the insurer to 13 promptly pay for the cost of the repair or replacement under the 14 terms of the policy, provided that the insurer shall be under no 15 obligation to pay more than the prevailing market price charged 16 by other motor vehicle repair or window glass companies at 17 locations providing comparable services or products in the same 18 geographic area. 19 (c) No insurer and no agent, adjuster or employee of an 20 insurer shall engage in any act of intimidation, coercion or 21 threat for or against any insured person to use a particular 22 company or location to provide repair service or replacement 23 service. 24 Section 2. This act shall take effect immediately. L9L40JAM/19950H1394B1615 - 2 -