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2003 SESSION

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HB 2267 Insurance; unfair settlement practices; replacement and repair.

Introduced by: Frank D. Hargrove, Sr. | all patrons    ...    notes | add to my profiles | history

SUMMARY AS PASSED:

Insurance; unfair settlement practices; replacement and repair. Prohibits insurance companies and their representatives from failing to disclose to its insured or claimant, at any time that it recommends the use of a designated replacement or repair facility or service or products of a designated manufacturer, that (i) such person is not obligated to use such facilities, services, or materials and (ii) the insurer has a financial interest in the replacement or repair facility, if the insurer has such an interest. This bill incorporates HB 2333 and HB 2737.

SUMMARY AS PASSED HOUSE:

Insurance; unfair settlement practices; replacement and repair. Prohibits insurance companies and their representatives from failing to disclose to its insured or claimant, at any time that it recommends the use of a designated replacement or repair facility or service or products of a designated manufacturer that (i) such person is not obligated to use such facilities, services, or materials and (ii) if the insurer has a financial interest in the replacement or repair facility. This bill incorporates HB 2333 and HB 2737.

SUMMARY AS INTRODUCED:

Insurance; unfair settlement practices; replacement and repair. Prohibits insurance companies and their representatives from recommending the use of a designated replacement or repair facility or service or products of a designated manufacturer when settling a claim without first (i) advising the insured or claimant, either orally or in writing, that they are not obligated to use such facilities, services, or materials and (ii) disclosing to the insured or claimant the location of the recommended repair or replacement facility. Failure to advise the insured or claimant may result in penalties of up to$5,000. The use of such facilities, services or materials alters neither the insurer's nor the insured or claimant's liabilities or obligations under the insurance policy or the law.