To prohibit insurance carriers from using third party companies to administer auto glass claims if the third party company has an interest in an auto glass company. Insurance companies guilty of this provision could be subject to fines, or suspension, revocation, or refusal of their insurance license. See companion HB 1066.   Official Text and Analysis.

To chang from a prohibition on the contract for claims administration for auto glass between an insurance company and an auto glass business to regulation of the relationship between the customer and the auto glass repair facility that is the third-party administrator for the insurance company. The customer's right to choose any auto glass facility is declared. Verbal disclosure from the third-party administrator to the customer that the customer has the right to choose and that the third-party administrator is a separate entity from and has a financial arrangement with the insurer is required. In addition, it is required that: (1) a written notice of the verbal disclosures in each repair facility owned by an insurer or third-party administrator is posted, and prior, verbal transmission to the customer if the transaction is done by a mobile facility; (2) the right to file a complaint with the Office of the Insurance Commissioner is given to the customer; and (3) it is stated that no private right of action is created.