HOUSE DOCKET, NO. 2772        FILED ON: 1/14/2009

HOUSE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No. 3680

The Commonwealth of Massachusetts

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In the Year Two Thousand Nine

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An Act  RELATING TO AUTO GLASS INSURANCE CLAIMS AND THIRD PARTY BILLING..

Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:
 

SECTION 1. Chapter 100A of the General Laws is hereby amended by adding the following section:—  

100A:11 Auto glass replacement and/or repair or rental and replacement vehicle transactions and services; 3rd party billing limitations

Section 11. Notwithstanding any provisions of any general or special law to the contrary no company which serves as a third party biller for a particular insurance company whether a carrier or a producer may additionally provide auto glass replacement and/or repair services or rental and replacement vehicle transactions and services for such insurance company. A third-party biller shall be defined as any company who processes pays and monitors the payment of auto glass claims on behalf of an insurance carrier or insurance producer. Such third-party biller shall not be related to any glass replacement repair services in any way. This includes stock ownership or such ownership by any direct family relative. Such third-party biller shall file with the Office of the Insurance Commissioner statements of ownership every year on a prescribed schedule or upon any material change in ownership. All third-party billers shall file with the Office of the Insurance Commissioner all contracts held with specific insurance companies either carriers or producers which delineate the provisions of the business relationship excluding the amount of consideration provided for third-party billing services. The commissioner of the division of insurance shall promulgate rules and regulations for the administration and enforcement of this section. Each violation resulting in a failure to file either the statement of ownership and/or agreements between insurance companies and third-party billers shall result in a fine of $5000.00 per incident. The fine shall be collected by the Division of Insurance and deposited in a retained revenue account to be used by the division to carry out the enforcement of this act. Furthermore the division of insurance shall create and make available forms for reporting such violation of this section. An insurance company or third party biller for such insurance company violating the first paragraph of this section shall be punishable by a fine of $1000.00 for each incident. The fine shall be collected by the Division of Insurance and deposited in a retained revenue account to be used by the division to carry out the enforcement of this act. Furthermore the division of insurance shall create and make available forms for reporting such violation of this section.  

   SECTION 2. Chapter 100A of the General Laws is hereby amended by adding the following section:—  

100A:12

Auto glass replacement and/or repair or rental and replacement vehicle transactions and services; restrictions

Section 12. Notwithstanding any provisions of any general or special law to the contrary no insurance company third party biller agent or adjuster for such insurance company that issues or renews in the commonwealth any policy of insurance covering in whole or in part any motor vehicle may require that any person insured under said policy use a particular company or location for the providing of auto glass replacement and/or repair services; provided that this shall not prevent an insured from specifically requesting information about a particular auto glass shop and its location.   No such insurance company third party biller agent or adjuster for such insurance company may engage in any act or practice of intimidation coercion threat or inducement for or against any such insured person to use a particular company or location to provide such services or products nor shall such insurance company producer, third party biller agent, or adjuster provide for allow or facilitate telephonic claims information directly to preferred automobile glass repair shops.  The provisions of this section are applicable only to auto glass repair shops registered under the provisions of chapter 100A.  The commissioner of the division of insurance shall promulgate rules and regulations for the administration and enforcement of this section. An insurance company third party biller agent or adjuster for such insurance company violating this section shall be punishable by a fine of not less than $300.00 nor more than $500.00 for each incident. The fine shall be collected by the Division of Insurance and deposited in a retained revenue account to be used by the division to carry out the enforcement of this act. Furthermore the division of insurance shall create and make available forms for reporting such violation of this section. Any violations of this chapter are subject to the provisions of chapter 93A.