MISSISSIPPI LEGISLATURE

1999 Regular Session

To: Insurance

By: Senator(s) White (29th)

AN ACT TO AMEND SECTION 83-11-501, MISSISSIPPI CODE OF 1972, TO REVISE THE REQUIREMENT THAT AN INSURER'S PAYMENT FOR AUTO REPAIR SHALL BE THE LOWEST FAIR AMOUNT IN THE GEOGRAPHIC OR TRADE AREA; 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 by a particular contractor or motor vehicle repair shop * * *.

(2) The most an insurer shall be required to pay for the repair of a damaged vehicle * * * is the lowest amount that such vehicle * * * could be properly and fairly repaired or replaced by a contractor or repair shop within a reasonable geographical or trade area of the insured. This subsection (2) shall not apply when glass repair or replacement is the only repair needed to the damaged vehicle.

SECTION 2. This act shall take effect and be in force from and after its passage.