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Senate Engrossed |
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State of Arizona Senate Fiftieth Legislature First Regular Session 2011
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SENATE BILL 1238 |
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AN ACT
Amending sections 20‑441 and 20‑463.01, Arizona Revised Statutes; amending title 20, chapter 2, article 6, Arizona Revised Statutes, by adding section 20-469.01; relating to auto glass repair.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 20-441, Arizona Revised Statutes, is amended to read:
20-441. Purpose of article; definitions
A. Among the purposes of this article is the regulation of trade practices in the business of insurance in accordance with the intent of Congress as expressed in the act of Congress of March 9, 1945, 59 Stat. 33, by defining, or providing for the determination of, all such practices in this state that constitute unfair methods of competition or unfair or deceptive acts or practices and by prohibiting the trade practices so defined or determined.
B. For the purposes of this article: ,
1. "Insurance company" or "insurer" means any:
1. (a) Stock, mutual, reciprocal or title insurer.
2. (b) Fraternal benefit society.
3. (c) Health care services organization.
4. (d) Hospital, medical, dental and optometric service corporation.
5. (e) Prepaid dental plan organization.
6. (f) Mechanical reimbursement reinsurer.
7. (g) Prepaid legal plan.
8. (h) Lloyd's association.
9. (i) Service company as defined in this title.
10. (j) Any Other entity licensed under this title.
2. "Third party administrator" means any person who collects charges or premiums from or paid on behalf of, or who provides administrative services to or adjusts or settles claims by, residents of this state in connection with motor vehicle insurance coverage.
Sec. 2. Section 20-463.01, Arizona Revised Statutes, is amended to read:
20-463.01. Unlawful practices; auto glass repair; policyholders; insurers
A. It is an unlawful practice for a person who sells or repairs auto glass to knowingly:
1. Submit a false claim to an insurer for auto glass repair or replacement or for related services:
(a) If the services were not provided.
(b) Showing work performed in a geographical area that in fact was not the location where the services were provided and that results in a higher payment than would otherwise be paid to the person by the policyholder's insurer.
(c) Not authorized in writing by the owner or lessee of the vehicle.
(d) Showing work performed on a date other than the date the work was actually performed and resulting in a change of insurance coverage status.
2. Advise a policyholder to falsify the date of damage to the auto glass that results in a change of insurance coverage for repair or replacement of the auto glass.
3. Falsely sign on behalf of a policyholder or another person a work order, insurance assignment form or other related form in order to submit a claim to an insurer for auto glass repair or replacement or for related services.
4. Misrepresent to a policyholder or other person:
(a) The price of the proposed repairs or replacement being billed to the policyholder's insurer.
(b) That the insurer has approved the repairs or replacement unless the auto glass repair or replacement facility has verified coverage or obtained authorization directly from the insurance company or any other third party administrator contracted with the insurance company and the evidence has been confirmed by fax, e‑mail or other written and recorded communication.
5. Represent to a policyholder or other person that the repair or replacement will be paid for entirely by the policyholder's insurer and at no cost to the policyholder unless the insurance coverage has been verified by a person who is employed by or is a producer contracted with the policyholder's insurer or is a third party administrator contracted with the insurer.
6. Add to the damage of auto glass before repair in order to increase the scope of repair or replacement or encourage a policyholder or other person to add to the damage of auto glass before repair.
7. Perform work clearly and substantially beyond the level of work necessary to repair or replace the auto glass to put the vehicle back into a safe pre‑damaged condition in accordance with accepted or approved reasonable and customary glass repair or replacement techniques.
B. It is unlawful for a person who sells or repairs auto glass to intentionally misrepresent the relationship of the glass repair facility to the policyholder's insurer. For the purposes of determining whether a person intended the misrepresentation, it may be presumed that the person intended the misrepresentation if the person was engaged in a regular and consistent pattern of misrepresentation.
C. It is unlawful for an insurer or an insurer's third party administrator or agent to cause a delay in the inspection of a policyholder's auto glass condition in the handling of a policyholder's claim regardless of which repair facility the policyholder chooses.
C. D. A violation of this section is subject to enforcement under this article.
D. E. For the purposes of determining whether a defendant knew of any particular element of the prohibited activity, it may be presumed that the person had knowledge if the person was engaged in a regular and consistent pattern of the prohibited activity.
Sec. 3. Title 20, chapter 2, article 6, Arizona Revised Statutes, is amended by adding section 20-469.01, to read:
20-469.01. Third party administrator; glass; violation; classification
A. If a third party administrator recommends or provides information about a glass repair facility to a customer, the third party administrator shall inform the person of the person's right prescribed in section 20-469 to choose any glass repair facility for the repair of the loss relating to motor vehicle glass at the same time as making the recommendation or providing information. An independent adjuster or a third party administrator's automotive physical damage appraiser or claims inspector for automotive glass repair or replacement work in connection with an automotive glass repair inspection shall not recommend any particular glass repair facility. For the purposes of this subsection "third party administrator" means any person who provides administrative services or adjusts or settles claims in connection with automobile glass repair insurance coverage.
B. This section shall not apply to any employee of an insurer.
C. This section shall not create a private right of action.
D. A person who violates this section is guilty of a petty offense for a first violation and is guilty of a class 3 misdemeanor for any subsequent violation.