2003 House Bill 4127 / 2004 Public Act 190

Regulate insurance ownership of body shop

Introduced in the House

Jan. 30, 2003

Introduced by Rep. Ken Daniels (D-2)

To prohibit an auto insurance provider from intimidating, inducing, recommending, suggesting, or requiring an insured customer to use a particular shop or parts for repairs covered by the policy; and to require insurers to pay for repairs at market price (which is not necessarily the lowest possible price).

Referred to the Committee on Insurance and Financial Services

Nov. 12, 2003

Reported without amendment

With the recommendation that the substitute (H-3) be adopted and that the bill then pass.

Dec. 4, 2003

Substitute offered

To replace the previous version of the bill with one which does not absolutely prohibit an insurer from requiring an insured customer to use a particular shop or parts, but would prohibit unreasonably restricting an insured person from using a particular repair shop.

The substitute passed by voice vote

Amendment offered by Rep. Larry Julian (R-85)

To strike out a provision specifically authorizing insurance companies from entering into agreements with automobile repair or automobile glass repair or replacement facilities for the purpose of containing repair costs. Note: Under current law nothing prohibits such agreements.

The amendment passed by voice vote

Passed in the House 103 to 1 (details)

To prohibit auto insurance providers from unreasonably restricting an insured customer from using a particular shop or parts for repairs covered by a policy. The bill would require an insurer to disclose the existence of an agreement it has with a partucular repair shop, and inform the customer that he or she is under no obligation to use that particular shop.

Received in the Senate

Dec. 9, 2003

Referred to the Committee on Banking and Financial Institutions

May 18, 2004

Reported without amendment

With the recommendation that the amendments be adopted and that the bill then pass.

May 26, 2004

Amendment offered

To adopt technical wording changes that do not affect the bill's substance as previously described.

The amendment passed by voice vote

June 1, 2004

Passed in the Senate 37 to 0 (details)

To prohibit auto insurance providers from unreasonably restricting an insured customer from using a particular shop or parts for repairs covered by a policy. The bill would require an insurer to disclose the existence of an agreement it has with a partucular repair shop, and inform the customer that he or she is under no obligation to use that particular shop.

Received in the House

June 1, 2004

June 22, 2004

Passed in the House 106 to 1 (details)

To concur with the Senate-passed version of the bill.

Signed by Gov. Jennifer Granholm

July 8, 2004