Senate Bill 2187

AN ACT TO AMEND SECTION 83-11-501, MISSISSIPPI CODE OF 1972, TO PROHIBIT MOTOR VEHICLE REPAIR SHOPS FROM CHARGING LABOR RATES ABOVE THE NATIONAL AVERAGE FOR LIKE-KIND WORK; 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. In no event shall a motor vehicle repair shop charge labor rates above the average national rate charged for like-kind work, without the express approval of the Commissioner of Insurance.

SECTION 2. This act shall take effect and be in force from and after July 1, 2016.