California Senate Committee to Consider Insurer Restrictions

SACRAMENTO, Calif. --- During hearings set for April 2, the California Senate Banking, Finance and Insurance Committee will consider two bills seeking to place additional restrictions on auto insurers.

California Senate Bill 1167 would prohibit insurance companies from requiring, suggesting or directing customers to have their damaged vehicle repaired at a specific auto repair dealer, unless the claimant expressly requests a referral or is informed in writing of the right to choose the repair dealer.

The bill has drawn strong support from independent body shops and some consumer groups. But insurance companies have launched a campaign to turn public opinion against the bill. Leading this campaign are the American Insurance Association, Personal Insurance Federation of California, and Association of California Insurance Companies.

The committee is also scheduled on April 2 to consider a bill seeking restrictions on insurance company use of aftermarket parts on vehicles under factory warranty.