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SB5

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SB 5 (BR 851) - G. Tapp, J. Westwood

     AN ACT relating to motor vehicle repair claims.
     Create a new section of Subtitle 12 of KRS Chapter 304 to define "claimant," "deceptive referral," "request or require," and "free market rate"; require an insurer to inform a claimant upon initial notification of a claim that the claimant has the right to choose the repair facility for repair of a damaged vehicle; prohibit an insurer from steering a claimant to use a specific person or business for motor vehicle repairs; prohibit an insurer from engaging in deceptive referral practices; prohibit an insurer or appraiser from steering a claimant to use a specified facility for appraisals or repairs; require all appraisals to contain a notice regarding the provisions of this section; require evidence of proof of financial responsibility or security regarding motor vehicles to contain a statement regarding an insured's right to choose a repair facility; require appraisers of motor vehicle damage claims to conduct a physical visual inspection of the vehicle and to leave an estimate of the damages with the repair facility; prohibit the alteration of an estimate of physical repair damage other than by an original appraiser; require the labor rate for damages paid to be based on the free market rate; require all claims to be paid within 30 days of notice of the claim and establish penalties for violations of this requirement; amend KRS 304.99-110 to establish a penalty for a violation of the section's provisions.

SB 5 - AMENDMENTS


     SCS - Delete all provisions of original bill, except retain provisions which require insurers to inform claimants upon notification of a motor vehicle damage claim that the claimant has a right to choose their repair facility and provides that appraisals for motor vehicle damage claims must include a notice regarding claimants rights under this Act; create a new section of Subtitle 99 of KRS Chapter 304 to provide that persons violating this Act shall be subject to civil fines in an amount not less than $250 and not more than $5,000.

     Jan 5-introduced in Senate
     Jan 6-to Banking & Insurance (S)
     Mar 16-reported favorably, 1st reading, to Calendar with Committee Substitute
     Mar 17-2nd reading, to Rules; posted for passage in the Regular Orders of the Day for Thursday, March 18, 2010
     Mar 18-3rd reading, passed 35-2 with Committee Substitute
     Mar 19-received in House
     Mar 22-to Banking & Insurance (H)

Vote History
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