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Tuesday, 09 September 2014 22:42

Farmers Drop MFN

Following Farmers Insurance’s decision to remove Most Favored Nation (Customer) clauses from insurer direct repair programs, Dan Risley, Automotive Service Association (ASA) president and executive director, sent a letter of thanks to Jeffrey Dailey, Farmers’ chief executive officer.

Generally, Most Favored Nation (MFN) clauses stipulate that should a provider give a bottom line discount, rebate or other estimate discount on the repair costs to any insurer, the same or better bottom line discount must be given to the insurer proposing the DRP agreement. The elimination of MFN clauses has long been a policy priority for ASA.

“We are very pleased that Farmers has removed the MFN clause from the DRP agreements. I want to personally thank you and the Farmers team for your leadership in eliminating these clauses, which have become a significant burden for ASA members,” said Risley.

ASA’s collision leaders have made several trips to Washington, D.C., to discuss eliminating the clauses with congressional leaders, the U.S. Department of Justice and the Federal Trade Commission.

To view a copy of ASA’s letter to Farmers, or to learn more on ASA’s work to eliminate MFN clauses from DRP agreements, click HERE.

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