MISSISSIPPI LEGISLATURE

2001 Regular Session

To: Insurance

By: Representative Cameron

AN ACT TO AMEND SECTION 83-11-501, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT NO INSURER MAY RECOMMEND A PARTICULAR CONTRACTOR FOR AUTOMOBILE GLASS REPAIR; TO PROVIDE THAT NO INSURER SHALL ESTABLISH AN AGREEMENT FOR THE PROCESSING OF CLAIMS OR BILLS WITH A GLASS BROKER; TO PROVIDE THAT GLASS REPAIR SHOPS SHALL BE PAID THE SAME AS BODY SHOPS; 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 recommend a particular contractor or 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.

(2) No insurer shall establish an agreement for the processing of claims or bills with a glass broker or with an entity that has a financial interest in an entity in this state that installs or provides glass for installation. For purposes of this subsection, the term "glass broker" means an automobile glass company that acts as a third-party agent for the insurer whenever the glass broker enters into agreements with other automobile glass dealers to perform glass replacement or glass repair work or that installs or manufactures glass or provides glass for installation.

(3) Insurers shall pay glass repair shops the same labor rate hours as paid to body shops for glass repairs based on the Mitchell Book Labor Rate Hours.

SECTION 2. This act shall take effect and be in force from and after July 1, 2001.