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Letter to the Editor

Colorado Governor Signs Steering Prohibition Legislation

Introduced by Rep. Joe Stengel, R-Littleton, the legislation:

• Encourages competition by prohibiting unfair and discriminatory insurance practices that impede fair and honest competition. The legislation prohibits an insurer from directly or indirectly requiring appraisals or repairs to motor vehicles be made by a specific repair facility.
• The use or failure to use a particular repair facility shall not result in a non-payment of claims by the insurer. The new law assures that an insurer cannot intimidate, coerce, threaten or induce by incentive a claimant to use a particular repair facility.
• An insurance company cannot use disincentives to discourage a claimant from using a particular repair facility of his or her choice. The insurance company or agent my not accept a referral fee or compensation for referring a claimant to a particular repair shop. The insurer cannot require the insured to travel unreasonable distances to obtain repairs or an estimate for work.

"The Automotive Service Association (ASA) supported this legislation and we are very pleased to see Gov. Owens sign it. The new law will foster competition and free trade within Colorado's automotive aftermarket industry," said Bob Redding, ASA's Washington D.C. representative.

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