House Bill 850

AN ACT TO AMEND SECTION 83-11-501, MISSISSIPPI CODE OF 1972, TO PROHIBIT INSURERS FROM RECOMMENDING A PARTICULAR MOTOR VEHICLE REPAIR SHOP OR CONTRACTOR TO THE INSURED; TO PROVIDE PENALTIES FOR VIOLATIONS; 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 shall recommend a particular motor vehicle repair shop or a particular contractor to an insured who is making a claim under his policy and submitting bids for motor vehicle body damage or repair. For a violation of this section, the offender shall be guilty of a misdemeanor and, upon conviction, shall be punished by a fine of not more than Five Thousand Dollars ($5,000.00) in accordance with Section 83-5-85.

SECTION 2. This act shall take effect and be in force from and after July 1, 2002.