February 10, 2010

AZ Bill Seeks to Prevent Auto Glass Repair Fraud

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PHOENIX - Arizona state legislators are now considering a bill seeking to tighten regulation of auto glass repair and replacement. 

The bill (HB 2463) would specifically make it a crime for a repair shop to bill an insurer for false claims related to auto glass repair or replacement. The legislation also specifically prohibits shops from lying about where and when the repair work was made. Neither could shops sign a work order or insurance assignment form on behalf of a policyholder in order to submit a claim to an insurance company for auto glass repair or replacement. 

Other provisions of the bill would prohibit shops from telling a policyholder or other person that the repair or replacement will be paid for entirely by the insurance policy, unless the person making that statement is employed by or a producer contracted by the policyholder's insurer. Also prohibited would be the performance of auto glass repair or replacement that's beyond the level of work necessary. 

The bill had its first reading in the House on Jan. 21, and was directed to the Banking and Insurance, Rules, and Judiciary committees.