MISSISSIPPI LEGISLATURE

1999 Regular Session

To: Insurance

By: Representative Clarke

AN ACT TO AMEND SECTION 83-11-501, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT NO INSURER MAY WRITE CRITERIA BY WHICH MOTOR VEHICLE REPAIR SHOPS ARE QUALIFIED FOR AN INSURER'S REFERRAL LIST; TO PROVIDE THAT NO INSURER MAY OFFER OR PROPOSE ANY FORM OF A REFERRAL LIST OF REPAIR SHOPS TO POLICYHOLDERS OR CLAIMANTS; 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. 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 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.

No insurer may write criteria of any kind by which repair shop equipment qualifying specifications may be required in order to qualify any repair shop to the insurer's referral list. No insurer may offer or propose any form of a referral list of repair shops to policyholders or claimants.

SECTION 2. This act shall take effect and be in force from and after July 1, 1999.