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GEICO Hits Nuclear Button Over Insurance Fraud in Tucson, AZ by Lyle Adriano
GEICO is redoubling its zero-tolerance policy towards fraud, by filing its second federal lawsuit in Arizona against an auto repair shop that has been suspected of filing fraudulent repair bills. The insurer alleges that the Advantage Auto Glass repair shop submitted invoices with forged signatures of GEICO’s customers, for repairs that were never performed. In particular, GEICO alleges that it was billed for repairs associated with Advanced Driver Assistance Sys-
tems–systems that were not available on many of the cars being “repaired.”
In addition to billing for services that were not provided, GEICO’s suit alleges that the defendants submitted falsified documents from Arizona automobile dealerships. These documents were for reimbursement of glass parts that were not purchased. See GEICO, Page 10
Common Mistakes Body Shops Make When Recycling & Staying Green by Ed Attanasio
ices for recalled and expired goods. It also provides related education and training services for many companies, including collision repair shops. Headquartered in Lake Forest, IL, with many more bases of operation around the world, Stericycle maintains toxic waste incinerators in Utah and North Carolina.
Wade Scheel, director of governmental affairs at Stericycle Environmental Solutions, has been working at the 30year-old compliance company for 11 years and has three decades of industry experience. Stericycle specializes Wade Scheel, in collecting and disposing director of regulated substances, such governmental as medical waste and sharps, affairs at Stericycle pharmaceuticals, hazardous Environmental Solutions waste, and providing serv-
What are the most common slip-ups that body shops encounter when
Q:
See Staying Green, Page 4
AUTOBODYNEWS.COM
Vol. 37 / Issue 6 / June 2019
Auto Insurance Industry Influence Stalls Bill Addressing TX Civil Courts The 2019 Texas Legislature has the opportunity to make insurance companies pay on uninsured/underinsured motorist policy benefits. House Bill 1739 received bipartisan support in the Texas House Insurance Committee when it was voted out of committee on April 2. However, the non-partisan citizen advocacy group, Texas Watch, is warning that the bill may not make it to the House floor due to insurance industry lobbyists. HB 1739, introduced by Representative Charlie Geren, aims to restore the rights of Texans and force insurance companies to pay uninsured/underinsured motorist policy benefits without having to file a lawsuit against their insurance company. Rep. Geren introduced HB 1739 to make UM/UIM benefits due “once
liability and damages have become reasonably clear.” In 2006, the Texas Supreme Court ruled in Brainard V. Trinity Universal Insurance that insurers have no contractual duty to pay benefits on a UM/UIM claim until the insured obtains a judgment. This ruling forces car crash victims to hire an attorney and go through a years-long process to sue their insurance company. To add insult to injury, under the current law, these victims aren’t entitled to reimbursement on attorney fees and other fees associated with their claims. “Over the last 10 to 15 years, we’ve had thousands of clients come into our office after receiving UM/UIM denials from their insurance companies,” said Carlson Law Firm Partner Michael Erskine. “It’s See TX Civil Courts, Page 21
CIC Speakers Debate Need to Legislate Use of OEM Repair Procedures
was geared towards new limits the legislation would have placed on the State legislative efforts to enact leg- use of non-OEM parts. islation on the use of OEM repair pro“In the collision industry, we cedures have bogged down. can’t seem to escape loading Other issues, such as steerthese things up,” Bob Reding and non-OEM parts, ding, national lobbyist for have taken priority. Therethe Automotive Service Asfore, these issues are being sociation (ASA), said of incorporated into the prosuch state bills. “Only a few posed legislation, according [of the current proposed state regulations] are skinny to speakers at the Collision Bob Redding bills, dealing with OEM Industry Conference held in procedures. We often see parts get in. Nashville, TN. For example, a bill in Nevada In some state bills, like in Texas, you that would have prohibited an in- see steering slip in there. When you surer “to repair a motor vehicle in a have a bill moving, people try to manner which is contrary to the rec- solve every single issue in it. It brings ommendations of the manufacturer in all sorts of controversy when it of the vehicle,” failed to move for- picks those other kinds of things. It ward by a legislative deadline, this brings out other adversaries, and typspring. Opposition to the bill surfaced ically [the bills] have problems along at a hearing in March. The opposition See CIC Speakers Page 24 by John Yoswick
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