MISSISSIPPI LEGISLATURE

1998 Regular Session

To: Insurance

By: Representative Stevens

House Bill 88

AN ACT TO AMEND SECTION 83-11-501, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT THE OWNER OF A MOTOR VEHICLE REPAIR SHOP, INCLUDING A GLASS REPAIR OR GLASS REPLACEMENT SHOP, HAS THE RIGHT TO PARTICIPATE AS A CONTRACT PROVIDER UNDER AN AUTOMOBILE INSURANCE POLICY IF THE OWNER OF THE REPAIR SHOP AGREES TO PROVIDE SERVICES THAT MEET THE TERMS AND REQUIREMENTS OF THE POLICY AND AGREES TO THE TERMS OF REIMBURSEMENT SET FORTH BY THE INSURER; TO PROHIBIT AN INSURER FROM IMPOSING A MONETARY ADVANTAGE OR PENALTY UNDER A POLICY THAT WOULD AFFECT AN INSURED'S CHOICE AMONG THOSE REPAIR SHOPS THAT HAVE AGREED TO PARTICIPATE IN THE POLICY ACCORDING TO THE TERMS OFFERED BY THE INSURER; AND FOR RELATED PURPOSES. 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. Section 83-11-501, Mississippi Code of 1972, is amended as follows:

83-11-501. (1) No insurer may require as a condition of payment of a claim that repairs to a damaged vehicle, including glass repairs or replacements, must be made or billed by a particular contractor or motor vehicle repair shop; provided, however, the most an insurer shall be required to pay for the repair of the vehicle or repair or replacement of the glass is the lowest amount that such vehicle or glass could be properly and fairly repaired or replaced by a contractor or repair shop within a reasonable geographical or trade area of the insured.

(2) An insurer may not:

(a) Prohibit or limit any person who is an insured under the policy from selecting a motor vehicle repair shop, including a glass repair or glass replacement shop, of his choice if the owner of the repair shop has agreed to participate as a contract provider according to the terms offered by the insurer;

(b) Deny the owner of a motor vehicle repair shop, including a glass repair or glass replacement shop, the right to participate as a contract provider under the policy if the owner of the repair shop agrees to provide services that meet the terms and requirements set forth by the insurer under the policy and agrees to the terms of reimbursement set forth by the insurer;

(c) Impose upon an insured any condition that is not equally imposed upon all insureds in the same benefit category or class under the policy when receiving services from a contract provider;

(d) Impose a monetary advantage or penalty under a policy that would affect an insured's choice among those motor vehicle or glass repair or glass replacement shops that have agreed to participate in the policy according to the terms offered by the insurer. Monetary advantage or penalty includes a reduction in reimbursement for services or promotion of one participating provider over another by these methods; or

(e) Reduce allowable reimbursement for motor vehicle or glass repair or glass replacement services to an insured because the insured selects a repair shop of his choice so long as that repair shop has enrolled with the insurer under the terms offered to all repair shops within a reasonable geographical or trade area of the insured.

(3) Each insurer shall establish procedures to give interested contract providers located in the geographic area served an opportunity to apply for participation.

(4) A violation of this section creates a civil cause of action for injunctive relief in favor of any person or repair shop aggrieved by the violation.

(5) The Commissioner of Insurance shall not approve any policy providing motor vehicle or glass repair or glass replacement services which does not conform to this section.

(6) Any provision in a policy that is executed, delivered or renewed or otherwise contracted for in this state that is contrary to this section, to the extent of the conflict, is void.

(7) It is a violation of this section for any insurer to provide a policy providing motor vehicle or glass repair or glass replacement services to residents of this state that does not conform to this section.

SECTION 2. This act shall take effect and be in force from and after July 1, 1998.