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Vol. 8 / Issue 5 / February 2019
MI Lawmakers Target No-Fault Auto Insurance Law in Push to Cut High Rates
State Farm Agrees to Pay $250 Million to Settle Lawsuit in IL
by Beth LeBlanc and Jonathan Oosting, The Detroit News
by Emmariah Holcomb, glassBYTEs.com
Michigan Senate Republicans on Jan. 15 introduced a statement bill signaling intent to reform the state’s no-fault auto insurance reform law, using their first proposal of the twoyear session to renew calls to reduce rates. House Republicans also are set to aggressively target auto insurance reforms and on Jan. 14 announced plans to create a temporary special committee to consider options. Senate Bill 1 does not include
specific reform proposals but will serve as a starting point for future negotiations on how to cut rates that regularly rank among the highest in the nation. “The singular goal here is to reduce auto insurance rates across the state,” said Amber McCann, a spokeswoman for Senate Republicans, who have a 22-16 majority over Democrats. Sen. Aric Nesbitt, a Lawton Republican who helped shepherd major energy policy legislation through the House in late 2016, will lead the auto See Lawmakers Target, Page 18
Speakers at SCRS’ Ideas Collide Discuss Their Visions for Industry’s Future by John Yoswick
An automated system that can detect tiny dents or other vehicle “anomalies” within seconds. Collision parts being ordered within minutes of a crash. A not-for-profit data repository that would ensure shops have long-term access to their job file records. These were among the topics covered in a unique TED Talk-style presentation at “Ideas Collide,” a new session that the Society of Collision Repair Specialists (SCRS) hosted during SEMA in Las Vegas in
In December 2018, State Farm agreed to pay $250 million to settle an ongoing lawsuit in Illinois. The auto insurance company originally agreed to pay millions to end the Halve v. State Farm case in lieu of continuing with court proceedings. In the lawsuit, State Farm was found responsible for using aftermarket vehicle repair crash parts instead of original equipment manufacturer parts in the late ‘80s and ‘90s. “…[those who] made a claim for vehicle repairs pursuant to their policy and had non-factory authorized and/or non-OEM (Original Equipment Manufacturer) ‘crash parts’ installed on or specified for their vehicles or else received monetary compensation determined in relation
to the cost of such parts…,” a section of the court document reads. The court scheduled a Fairness Hearing on Dec. 13, 2018 at the United States District Court Southern District of Illinois before the money was to be paid. Its main purpose allowed the court to continue deliberating on whether or not the agreed upon settlement was fair, reasonable and adequate as well as answer any possible objections. During the hearing, one person, Lisa Marlow of Cocoa, FL, objected to the agreed settlement amount. She claimed the agreed amount of $250 million was too low and alleged the lawyers’ fees that were to be taken from the settlement were too high. According to court documents, U.S. Illinois Southern District Judge See State Farm Lawsuit, Page 22
Challenges of Processing Hail or Other Catastrophe Claims Among Discussion at Recent CIC
timating system,” but McDonnell said “cat team” claims handlers aren’t With another hail season approach- always aware of that. ing, a panel discussion at last No“We had to go through that vember’s Collision Industry [PDR] company for a supConference (CIC) offered plement,” McDonnell said. insights from shops, insur“We sent it to them and they ers and paintless dent repair took off a significant amount. companies on reducing fricThey said, ‘We have an tion related to catastrophe agreement [with the insurer claims after a major storm. involved] and you don’t get paid for those things.’ I had Matthew McDonnell Montana shop to call them and tell them, of Big Sky Collision in Monowner Matthew tana described some of the McDonnell said not ‘We have a different regulaall those helping tion in Montana. You cannot challenges of working on an insurer handle disregard repair operations, such “cat team” claims, such catastrophe claims and I just want to let you as those managed by a paintafter a storm will know you’re inconsistent less dent repair company. be aware of laws and regulations in with Montana law.’ They Since 2011, for example, the state in which said, ‘Oh, I don’t have to Montana has had a law that they are working follow Montana law.’” prohibits an insurer from But although some states may “unilaterally disregard(ing) a repair operation or cost identified by an esSee Processing Hail, Page 12 by John Yoswick
Pete Tagliapietra of NuGen IT suggested the industry develop a not-for-profit data repository to give shops long-term access to their job file records and other data
November. SCRS invited 10 speakers to offer ideas or visions related to See SCRS’ Ideas Collide, Page 20
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