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US - Montana Senate to Take Final Vote on Auto Glass Pricing Law Today

Post Time:Mar 24,2009Classify:Industry NewsView:394

The Montana Senate is expected to read H.B. 291, which speaks to auto glass pricing, for a third and final time today. Rep. Jon Sonju, who sponsored the bill, said that the bill passed its second reading in the Senate with a voice vote of 47-0 on Saturday, and he expects this final vote to end similarly.

If passed, the bill that would revise the state's insurance law on glass to use the average prevailing market price in insurance claims.

The law, which applies to body shops as well, currently provides for insurance companies to abide by the lowest prevailing market price.

If passed, the actual text of the law, which also deals with consumer choice for auto glass and auto body repairs, would be adapted to read as follows:

"Prevailing market price. For purposes of 33-18-221, and 33-18-223, and 33-18-224, 'prevailing market price' means the average market price in a local area. The prevailing market price may not be less than cost as provided in 30-14-209."

"[The bill] eliminates the lowest prevailing rate to kind of average out the cost, because there have been some issues with third-party administrators taking a lowest prevailing rate," said Rep. Sonju. "This is to even it out a little bit."

Rep. Sonju said the bill originally was brought to him by the Montana Collision Repair Specialists Association, based on both his prior involvement with the insurance law, and his own personal background.

"In my youth and early business days, my father actually owned a body shop, so I'm familiar with the world of collision repair and glass," he said. "That's why I took this on."

Source: glassBYTEsAuthor: shangyi

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