HOUSE DOCKET, NO. 3064        FILED ON: 1/20/2017

HOUSE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No. 2965

The Commonwealth of Massachusetts

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PRESENTED BY:

John J. Lawn, Jr.

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To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
Court assembled:

The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:

An Act requiring the commissioner of insurance to study the labor rates paid by auto insurers for the repair of damaged motor vehicles.

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PETITION OF:

HOUSE DOCKET, NO. 3064        FILED ON: 1/20/2017

HOUSE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No. 2965

The Commonwealth of Massachusetts

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In the One Hundred and Ninetieth General Court
(2017-2018)

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An Act requiring the commissioner of insurance to study the labor rates paid by auto insurers for the repair of damaged motor vehicles.

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. The commissioner of insurance shall conduct an investigation and study relating to the repair of damaged motor vehicles. Such investigation and study shall encompass the following matters, and such other related matters determined to be relevant by the commissioner:

1. for the most recent five-year period, the hourly labor rates paid by the top 10 auto insurers to registered motor vehicle repair shops in connection with the repair of damaged motor vehicles and how those labor rates relate to the labor rates paid in other New England states and in other states of the United States and the causes for differences in the rates paid in Massachusetts compared to other states;

2. for the most recent five year period, the number of registered motor vehicle repair shops in Massachusetts compared to the number of repair shops in other New England states and in other states of the United States, the numbers of such repair shops relative to the number of physical damage claims, and the impact any such differences in the number of such repair shops in Massachusetts may have on the hourly labor rate paid to registered motor vehicle repair shops;

3. for the most recent five year period, the average number of time it takes registered motor vehicle shops in Massachusetts to repair damaged motor in relation to the repair times in other states;

4. for the most recent five year period, the average number of days of use of rental cars in connection with the repair of damaged motor vehicles in Massachusetts in relation to the replacement rental times in other states;

5. The following information from registered repair shops for the past 5 years and such additional information from repair shops as determined by the commissioner:

whether registered repair shops participate in insurers' direct pay programs, and if so, with which insurers;

(ii) registered repair shop annual revenue, expense and profit or loss;

(iii) the hourly labor rates accepted by registered repair shops from insurers and the hourly labor rate charged to non-insured customers;

(iv) the number of cars repaired by repair shops;

(v) the average length of time damaged vehicles remain in registered repair shops being repaired and in storage;

(vi) the fees charged to insurers for storage;

(6) the laws governing the repair of damaged motor vehicles in relation to such laws in other states, particularly with respect to their impact on the time taken to complete repairs, the rental car times, and the hourly labor rates paid by insurers to registered motor vehicle repair shops.

Repair shops and the top 10 automobile insurance companies shall provide information requested by the commissioner deemed necessary for the completion of this investigation and study.

The commissioner shall prepare a report containing his findings, analysis, conclusions and recommendations for legislation, if any, based on such investigation and study. The commissioner's report shall address, among other issues, ways and means for improving the efficiency and cost effectiveness of the process of repairing damaged motor vehicles. The commissioner shall file his report with the chairs of the Joint Committee on Financial Services no later than December, 31, 2019.

SECTION 2. This act shall take effect on passage.