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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-
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
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VOL. 35 ISSUE 1 JANUARY 2017
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 12
Gene Crozat, Founder of Santa Rosa-Based G&C Auto Body, Dies at 72 Paul Payne, The Press Democrat
His success allowed him to construct a lavish, hotel-like headquarters Gene Crozat, the colorful founder of a near Corby Avenue’s Auto Row. Over Santa Rosa-based auto body empire five decades, he expanded the family who waged long-running batbusiness to 11 locations in tles with state and local offifour counties with more than cials, including one over a 200 employees. parking ticket that spawned a More recently, he became popular philanthropic misknown for his philanthropic sion— feeding parking meters work, forming his own charfor holiday shoppers—died ity for needy families and November 22 at the age of 72. supporting Sonoma County Gene Crozat Children’s Village, a haven Crozat opened G&C Auto Body with a partner in 1972 and built it for foster children, which closed in into a recognized North Bay brand, in 2015. part through ubiquitous radio advertisAnd each year at Christmas, he ing featuring his own folksy pitches. See Gene Crozat, Page 8
CDI Issues New Labor Rate Survey Regulations and Anti-Steering Measures to Take Effect Jan 1, 2017 California Insurance Commissioner Dave Jones’ office issued new collision repair labor rate survey regulations on Dec. 1 designed to increase consumer protections when a damaged vehicle is repaired. Jones also clarified new antisteering measures in an effort to prevent consumers from being misled or having claims delayed. Under regulations approved for 2017, insurers in California are set to face stricter rules to discourage the “steering” of policyholders to less expensive shops through deceptive or misleading statements. The State office of Administrative Law approved the regulations and they become law on Jan. 1, 2017. Insurers have until March 12, 2017, to adhere. A statement posted on the CDI website, insurance.ca.gov, says the Department of Insurance has worked on regulations protecting consumers who have filed automobile collision repair claims with insurance companies. The regulations went through a formal public review process required by state law, which included taking and responding to public input on the
regulations at public workshops, public hearings, and through written public comments. The regulations were drafted and revised with input from consumers, insurers, and repair shops. “Insurers limit payments for auto collision repairs based on labor rates derived from insurer created labor rate surveys which did not fairly measure labor rates. Consumers are left having to pay the difference between the actual labor cost of the repair and what the insurer was willing to pay based on its labor rate survey. The new regulation sets forth voluntary standards for insurers to accurately and reliably survey auto body repair labor rates to ensure they are paying the reasonable and proper amount. “Accurate and reliable labor rate surveys ensure that consumers are not left paying out-of-pocket for collision repairs, which should be covered by insurance, or worse, forced to leave the vehicle in disrepair creating a potential safety concern," said Commissioner Jones. The regulations outlined an example of how the prevailing auto body See CDI Regulations, Page 10
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