The Automotive Service Association (ASA) has announced that, as part of its 2014 legislative initiatives, it will continue to work with independent repairers and their state affiliate associations that have taken an active role in addressing insurer parts procurement mandates on a state level.
Although a few states in 2013 saw bills introduced to stop insurer-mandated parts procurement programs, none of these bills advanced to become law in their states, ASA noted. ASA anticipates that 2014 will see more legislative activity on parts procurement and other similar insurer mandates. ASA contacted state attorneys general and insurance regulators in the fall of 2013 asking that they review these programs to determine if they violate their state laws. ASA has had discussions with a number of these states that have submitted inquiries for additional supporting information. Important to note, ASA states, is that subsequent to its announcement relative to sending letters to each state, State Farm sent states letters arguing the legitimacy of such mandates. View an example of these letters.
“Our goal was to resolve this [State Farm PartsTrader issue] without government oversight, interference, or legislation,” said Dan Risley, ASA executive director.
“As such, we have persisted in our efforts to work with State Farm to change the current PartsTrader mandate policy. This has included multiple meetings and other discussions that continued throughout 2013. ASA believes that there are potential solutions, provided State Farm is willing to work toward an amicable resolution that benefits State Farm, collision repairers, and the consumer.”