Bill to eliminate assigning insurance benefits to auto glass repair companies clears the Senate
Sen. Linda Stewart
The Legislature is close to signing off on another litigation reform, after the Senate this week agreed to prohibit motorists from assigning their insurance benefits to auto glass repair shops.
The Senate voted 40-0 on April 19 to approve a revised SB 1002 by Sen. Linda Stewart, D-Orlando.
Stewart referred to state figures that show auto-glass related lawsuits exploded 6,000% from 2011, to 37,000 last year.
“This bill will finally put an end to the frivolous lawsuits perpetuated by a few bad actors and modernize our laws,” she said.
Stewart thanked Chief Financial Officer Jimmy Patronis — who appeared at multiple committee hearings to lend enthusiastic support — and Republican lawmakers who helped shape the final product.
“We are where we are today,” because of their efforts, she said.
In addition to preventing “AOB” or the assignment of benefits, SB 1002 would allow insurance companies to offer cheaper policies with deductibles for windshield repair — in addition to state-mandated full coverage.
The National Insurance Crime Bureau praised a provision that requires auto glass repairs shops to notify customers that they may need to have their advanced driver assistance systems, or ADAS, calibrated. Government Affairs Director Eric De Campos told lawmakers that unscrupulous shops are charging for unneeded calibrations or for a service they do not perform.
“Unfortunately, Florida’s relatively unique among other states in that current law creates a friendly environment for auto glass replacement fraud and abuse,” he said.
Sen. Nick DiCeglie, R-St. Petersburg, added an amendment that would require insurers to offer policyholders an option to use multiple shops without showing a preference.
The provision is meant to address concerns about “steering,” a federally banned practice in which insurers direct policyholders to a preferred vendor.
But that didn’t satisfy representatives for small repair shops who contend they will be driven out of business by Safelite, a large competitor.
Florida Independent Glass Association lobbyist Jeff Johnston told lawmakers that Safelite has an unfair advantage because in addition to its auto glass repair business, it serves as a claims handler for large insurers.
“Maybe they should be the glass company or they should be the third-party administrator,” Johnston said. “Maybe they shouldn’t be both.”
Safelite lobbyist Ashley Kalifeh assured lawmakers that the company supports anti-steering legislation. Safelite does not steer customers, who are free to choose their own repair shop, she said. A subsidiary, Safelite Solutions, is the claims handler, Kalifeh said. There is competition in the market, Kalifeh said.
SB 1002 cleared all committees without a negative vote. The House last week granted preliminary approval to a companion, HB 541 by Rep. Phillip “Griff” Griffitts, R-Panama City.
