The purpose of the new regulation will be to provide guidance and specificity to insurers with respect to the nature and degree of involvement they may have in a consumer’s choice of an automotive repair dealer.
The proposed regulation states, “Except when a referral is expressly requested by the claimant, after a claimant has chosen an automotive repair dealer, the insurer shall not suggest or recommend that the claimant select a different automotive repair dealer.”
The proposal continues to define the consumer-insurer relationship, “a claimant has chosen an automotive repair dealer when the claimant has specified to the insurer a specific automotive repair dealer ...” The regulation, if approved, also defines what it determines “suggest or recommend” includes as far as insurer actions.
The public hearing will be held at the Capitol Mall in the Employment Development Department Auditorium in Sacramento, Calif., Feb. 25, 2009. If attendance is not an option, all interested parties are invited to submit written comments.