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PUBLIC LAWS
First Special Session of the 122nd

H.P. 235 - L.D. 311

An Act To Prohibit Steering in Automobile Insurance

Be it enacted by the People of the State of Maine as follows:

     Sec. 1. 24-A MRSA §2164-C, as amended by PL 1993, c. 203, §1, is repealed and the following enacted in its place:

§2164-C. Free competition

     1. Appraisals or repairs to motor vehicle glass. A domestic or foreign insurer or its agent or employee may not require, directly or indirectly, that appraisals or repairs to motor vehicle glass be made or not be made in a specified place of business.

A domestic or foreign insurer or its agent or employee may not contract with any person to act as its agent for purposes of managing, handling or arranging repair or replacement of motor vehicle glass when that person is compensated by payment of a portion of the difference between the list price of the product or services provided and the amount paid to the person providing repair and replacement service.

     2. Appraisals or repairs to motor vehicles for collision damage. A domestic or foreign insurer or its agent or employee may not require, directly or indirectly, that appraisals or repairs to motor vehicles with collision damage be made or not be made in a specified place of business.

A domestic or foreign insurer or its agent or employee may not contract with any person to act as its agent for purposes of managing, handling or arranging repair or replacement of motor vehicles for collision damage when that person is compensated by payment of a portion of the difference between the list price of the product or services provided and the amount paid to the person providing repair and replacement service.
A domestic or foreign insurer or its agent or employee may not recommend the use of a particular motor vehicle repair service or network of repair services without informing the claimant that the claimant is under no obligation to use the recommended repair service or network of repair services.

     Sec. 2. Bureau of Insurance bulletin. On or before November 1, 2005, the Department of Professional and Financial Regulation, Bureau of Insurance shall issue to insurance companies and insurance producers who place motor vehicle insurance a bulletin regarding the amended provisions of the Maine Revised Statutes, Title 24-A, section 2164-C related to motor vehicle repairs.

Effective September 17, 2005.

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