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States Eye Insurer Mandated Parts Procurement Programs

Targeted News Service

BEDFORD, Texas, Jan. 17 -- The Automotive Service Association issued the following news release:

A number of state legislatures have begun or will begin soon their 2014 legislative sessions. Although a few states, in 2013, saw bills introduced to stop insurer mandated parts procurement programs, none of these bills advanced to become law in their states. The Automotive Service Association (ASA) has been working with independent repairers and their state affiliate associations that have taken an active role in addressing the insurer parts procurement mandates on a state level. ASA anticipates that 2014 will see more legislative activity on parts procurement and other similar insurer mandates.

In addition, ASA contacted state attorneys general and insurance regulators in the fall of 2013 asking that they review these programs to determine if they violate their state laws. ASA has had discussions with a number of these states that have submitted inquiries for additional supporting information. It's important to note that subsequent to our announcement relative to sending letters to each state, State Farm sent states a letter arguing the legitimacy of such mandates. To view an example of these letters, visit www.TakingTheHill.com.

Finally, ASA has not deviated from its initial approach to the State Farm PartsTrader issue. Dan Risley, ASA executive director, said, "Our goal was to resolve this issue without government oversight, interference or legislation. As such, we have persisted in our efforts to work with State Farm to change the current PartsTrader mandate policy. This has included multiple meetings and other discussions that continued throughout 2013. ASA believes that there are potential solutions provided State Farm is willing to work toward an amicable resolution that benefits State Farm, collision repairers and the consumer."

To view more on the State Farm PartsTrader issue and ASA's actions, visit the Automotive Service Association's legislative website at www.TakingTheHill.com.

The Automotive Service Association is the largest not-for-profit trade association of its kind dedicated to and governed by independent automotive service and repair professionals. ASA serves an international membership base that includes numerous affiliate, state and chapter groups from both the mechanical and collision repair segments of the automotive service industry.

[Category: Transportation]

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