News in brief around the country

Oregon Attorney General John Kroger joined other AGs in signing a letter written by New Jersey Attorney General Anne Milgram to AIG Chief Executive Officer Edward Liddy demanding a list of AIG employees getting bonuses. Kroger said, “I will not tolerate corporate fraud.”

The Nevada Assembly is proposing raising the damage threshold from 65 percent of the vehicle's pre-accident value to 100 percent of the vehicle's pre-accident value – not counting the cost of painting the vehicle. The definition would exclude any vehicle that is ten model years old or older or vehicles requiring only the replacement of certain specified crash parts such as the hood or trunk lid, or a combination of parts such as a grill assembly and headlight.

For its Select Service repair facilities State Farm is suspending its OEM parts discounts. The insurer believes that the additional discount is not warranted given the current economic climate.

In Polk County, Florida, Circuit Court, Gunder’s Auto Center has filed a slander and tortuous interference lawsuit against State Farm, stating that the insurer told the Plaintiff’s customers that the shop overcharges.

Eric Dinallo, the Insurance Superintendent for New York State’s Department of Insurance released investigation findings that representatives of some insurance companies were illegally “steering” customers to designated collision repair shops. “This very thorough investigation is reassuring in that it shows auto insurers are largely complying with the laws that preserve consumer choice,” Dinallo said.

Proposed California legislation, Assembly Bill 1179, would limit the writing of repair estimate to automotive collision repair professionals. Damage assessment would be written by employees of insurance companies. The aim of the bill is to help inform and educate consumers involved in an auto accident about the limited information contained in an insurer prepared visual damage estimate/assessment.

California Department of Insurance charged GEICO with steering and 13 specific cases of adjusting shop labor rates downward without completing a compliant labor rate survey or providing supporting evidence that their estimate was reasonable.

With strong opposition from consumers and industry the Alabama Automotive Dismantlers and Recyclers Association (AADRA) recently claimed a legislative victory by being instrumental in halting bills in hearings before the Alabama Legislature that would have opened auto salvage pools to unlicensed individuals.

In the North Carolina Senate, Bill 660 was introduced which if passed would require diminished value coverage to be a part of all motor vehicle liability insurance policies.