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Gauging What Lies Ahead for the Collision Industry in 2017 Based on the Events of 2016 by John Yoswick
As another new year begins, the collision industry can expect more big changes in terms of vehicle technology, repair requirements, judicial and regulatory actions, state and federal legislation, and insurer involvement in the claims process. Here’s a look at some of what’s in store for the coming 12 months. Changes in insurance industry regulation. Look for insurers to see a Trump presidency and Republicancontrolled Congress as an opportunity to scale back federal regulation of the insurance industry.
The National Association of Professional Insurance Agents (PIA), for example, has already urged that the Federal Insurance Office (FIO), established following the Great Reces-
Happy a NEW Year
velopment and talent retention, according to news releases and reports in the Detroit News. The new law clears the way for the public to use self-driving cars when they are available, and allows self-driving vehicles without steering wheels or pedals to be tested on public roads. Previously, only testing of the vehicles by manufacturers was permitted. The bill also allows automated vehicle platoons and on-demand autonomous vehicle networks to operate on roads throughout the state. Previously, only testing of vehicles was permitted. The result should See MI Autonomous Bills, Page 22
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MI Gov. Rick Snyder signs package of legislation. Credit: Governor’s office
they repeal the FIO,” Jon Gentile, PIA’s vice president of government relations, said. “Doing so would reaffirm that regulation of insurance should continue to be the responsibility of the states.” But Matthew Josefowicz, president of a Boston-based insurance technology consulting firm, cautioned that such reductions in federal oversight of insurers could embolden some state attorneys general and insurance commissioners, resulting in insurers “dealing with aggressive state regulators.” That could be good news for colSee Ahead to 2017, Page 24
MI OKs Operation of Autonomous Vehicles on Public Roads, Previously Only Testing Allowed Gov. Rick Snyder has signed legislation that aims to put Michigan at the forefront for autonomous technology, testing and deployment for self-driving cars. Proponents say the laws are important for the state’s economic de-
sion, be scrapped. “With Congress poised to significantly roll back key provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act, we ask that
VOL. 6 ISSUE 4 JANUARY 2017
Ohio Appeals Court Denies Plaintiffs’ Class Action Certification Motion, Progressive by Jeremy Gilman, Benesch Friedlander Coplan & Aronoff LLP
Four independent auto body shops sued Progressive Casualty Insurance Company in state court in Cleveland. Their gripe? They claimed that they repaired Progressive-covered vehicles but that Progressive tortiously interfered with their relationships with their customers “by dictating what services and parts” Progressive was “willing to pay for” when the body shops were “tasked with repairing” a covered vehicle. They also complained that Progressive improperly “dictate[d] the labor rates” it was willing to pay the body shops “without regard to a particular shop’s rates.” “[T]hese limitations,” plaintiffs contended, did “not necessarily allow for them to restore an insured’s car to its original, pre-loss condition,” which they alleged violated both Ohio law and Progressive’s own insurance policies. The body shops sought damages “for parts and labor expended in excess of” Progressive’s restrictions and declaratory relief requiring Progressive “to indemnify” the body shops “from any liability arising from their
compliance with these restrictions.” Progressive, in turn, asserted that its “practices are part of the competitive market for auto repair services in Ohio” and that its “Direct Repair Program” is “able to repair an insured’s vehicle to its pre-loss condition under the same terms offered to plaintiffs.” A seemingly simple fact pattern. The body shops claimed that Progressive wasn’t paying them enough to repair covered vehicles and Progressive claimed that it was. [But this is a class action blog, so] we’d be remiss if we ignored the fact that the body shops also moved for class certification. Their requested class? All Ohio registered auto body repair shops, or registered individuals, with the exception of those members of Progressive’s Direct Repair Program that have performed physical auto body repairs paid for directly or indirectly, partially or in full, by Progressive as a result of Automobile insurance policies issued by Progressive, from August 7, 2005 through present. See Court Denies Motion, Page 14
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