Calif. Legislators Approve Bill to Study Insurer Steering

SACRAMENTO, CA --- California legislators have passed two collision repair bills -- one directs the state insurance commissioner to form a task force to study insurer steering, and the other seeks to prohibit insurers from capping paint and materials charges.

Senate Bill 1167 gives California Insurance Commissioner Steve Poizner 30 days from the effective date of the bill to convene a task force comprising representatives from the insurance industry, collision repair industry, Department of Consumer Affairs and consumer protection groups to study the issue of insurer steering.

Senate Bill 1371, the anti-capping measure, prohibits insurers from applying arbitrary cost limits on paint and related materials when those limits are unrelated to the actual charges.

The Assembly passed the bills last month, while the Senate gave its approval last week.