News in brief around the country

Ron Reichen, CEO, Precision Body and Paint, Inc., in Beaverton, and coalition member of Oregonians for Safe Auto Repair, has been named a member of the national board of director for the Society of Collision Repair Specialists (SCRS) for 2009-2010. He and other board of director members and officers were recently sworn in prior to the annual SCRS Corporate Awards Dinner in Hartford, Connecticut.

Editor’s note: Congratulations, Ron.

California Assembly Bill 1200, supported by the Personal Insurance Federation of California (PIFC), sailed through committee. If passed it would modify an existing anti-steering statute to allow insurers to explain the benefits of Direct Repair Programs (DRPs) to claimants even after they have indicated their preference for a particular collision repair facility. AB 1200 supporters say the bill will enable consumers to make informed choices when selecting shops to repair their vehicles.

US Rep. Jackie Speier (D-CA) has requested that Californian Insurance Commissioner Steve Poizner oppose the bill. “Far from helping consumers make well-informed choices, the bill would allow insurers to continue to make sales pitches to consumers long after the consumer has” made a shop selection. A consumer’s choice should be respected, she said. Speier sees the bill as “insurance industry doublespeak.”

The California Autobody Association (CAA) opposes AB 1200 saying the measure would allow insurers to make statements that either disparage or discourage the services available in a non-DRP shop. Phrases such as "that shop didn't make our preferred list," or "if you take your car to that shop we cannot guarantee the repairs," or "you will have to pay the difference in the cost of the repairs" can cause a claimant to be 'steered' toward the insurer-selected auto body shops.