ASSEMBLY SUBSTITUTE AMENDMENT 1,
TO 2007 ASSEMBLY BILL 353
July 10, 2007 - Offered by Representative Van Roy.
AB353-ASA1,1,5 1An Act to renumber and amend 632.37; to amend 632.37 (title); and to create
2134.82, 632.37 (1) (title), 632.37 (1) (b), (c) and (d), 632.37 (2) and 632.37 (3) of
3the statutes; relating to: prohibiting an insurer from requiring a certain
4vendor for repairing a motor vehicle and insurance payments for motor vehicle
5repair costs.
Analysis by the Legislative Reference Bureau
Current law prohibits an insurer that issues a motor vehicle insurance policy
that covers the repair or replacement of motor vehicle glass from conditioning the
coverage on whether the insured or a third party making a claim under the policy
obtains services or parts from a particular vendor specified by the insurer. This
substitute amendment expands that prohibition. Under the substitute amendment,
an insurer that issues a motor vehicle insurance policy that covers the repair of a
motor vehicle may not condition that coverage on whether the insured or a third
party making a claim under the policy obtains a damage repair estimate or services
or parts from a particular garage, repair shop, or other vendor specified by the
insurer. In addition, if an insured or third party makes a claim for the repair of a
motor vehicle, the insurer must inform the insured or third party that they may
select any garage, repair shop, or other vendor for a damage repair estimate or the

repair and that the insurer will cover the reasonable costs of the repair regardless
of which garage, repair shop, or other vendor they select. The insurer also must
inquire whether the insured or third party has selected a garage, repair shop, or
other vendor for a damage repair estimate or the repair and may make a referral to
a garage, repair shop, or other vendor if the insured or third party indicates that he
or she has not selected a repair shop or requests a referral. The substitute
amendment provides that an insurer that pays for the repair of a motor vehicle must
pay for the repair at the same rate that the general public pays in that geographic
area, unless the insurer and repair facility have an agreement otherwise, and that
the insurer may not limit or discount the amount paid on the basis that the repair
would have cost less if it had been made at a repair facility specified by the insurer.
In addition, the substitute amendment specifies that nothing in the motor vehicle
repair restrictions or requirements may be construed as limiting an insurer's right
or obligation to physically inspect a motor vehicle that is the subject of a claim, and
that the insurer may not require that the inspection be conducted at a particular
garage, repair shop, or other facility specified by the insurer.
Also under the substitute amendment, an auto body repair facility or
automobile insurance claim facility must post in a conspicuous location a notice that
insurance companies are prohibited from requiring that repairs be made by a
particular repair facility. In addition, an auto body repair facility or an automobile
insurance claim facility must include that same notice at the top of every motor
vehicle repair estimate that it prepares.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB353-ASA1, s. 1 1Section 1. 134.82 of the statutes is created to read:
AB353-ASA1,2,6 2134.82 Notice of right to choose repairer. (1) An auto body repair facility
3or automobile insurance claim facility shall post in a conspicuous location a sign that
4states, in boldface letters not less than 2 inches high: "Wisconsin law prohibits an
5insurance company from requiring that motor vehicle repairs be made by a
6particular repair facility; the consumer has the right to choose the repair facility."
AB353-ASA1,3,2 7(2) Every motor vehicle damage repair estimate prepared by an auto body
8repair facility or automobile insurance claim facility shall include at the top of the
9estimate, printed in not less than 10-point boldface type, the following notice:
10"Wisconsin law prohibits an insurance company from requiring that motor vehicle

1repairs be made by a particular repair facility; the consumer has the right to choose
2the repair facility."
AB353-ASA1, s. 2 3Section 2. 632.37 (title) of the statutes is amended to read:
AB353-ASA1,3,5 4632.37 (title) Motor vehicle glass repair practices; restriction on
5specifying vendor
.
AB353-ASA1, s. 3 6Section 3. 632.37 of the statutes is renumbered 632.37 (1) (a) and amended
7to read:
AB353-ASA1,3,148 632.37 (1) (a) An insurer that issues a motor vehicle insurance policy covering
9the repair of a motor vehicle, including the repair or replacement of motor vehicle
10glass or other parts, may not require, as a condition of that coverage, that an insured,
11or a 3rd party, making a claim under the policy for the repair or replacement of the
12motor vehicle glass obtain a damage repair estimate or services or parts from a
13particular garage, repair shop, or other vendor, or in a particular location, specified
14by the insurer.
AB353-ASA1, s. 4 15Section 4. 632.37 (1) (title) of the statutes is created to read:
AB353-ASA1,3,1616 632.37 (1) (title) Restrictions on specifying repair facility.
AB353-ASA1, s. 5 17Section 5. 632.37 (1) (b), (c) and (d) of the statutes are created to read:
AB353-ASA1,3,2018 632.37 (1) (b) If an insured or a 3rd party makes a claim specified in par. (a)
19that is covered under a policy specified in par. (a), the insurer shall, at the time the
20claim is submitted, do all of the following in the following order:
AB353-ASA1,3,2321 1. Orally inform the insured or 3rd party that he or she may select any garage,
22repair shop, or other vendor to prepare a damage repair estimate or to repair the
23motor vehicle.
AB353-ASA1,4,3
12. Orally inform the insured or 3rd party that the insurer will pay the
2reasonable costs of the repair regardless of which garage, repair shop, or other
3vendor the insured or 3rd party selects to make the repair.
AB353-ASA1,4,64 3. Orally inquire whether the insured or 3rd party has selected a garage, repair
5shop, or other vendor to prepare a damage repair estimate or to repair the motor
6vehicle.
AB353-ASA1,4,117 (c) Except as provided in par. (d), if the insured or 3rd party indicates that he
8or she has selected a garage, repair shop, or other vendor to prepare a damage repair
9estimate or to repair the motor vehicle, the insurer may not attempt, or shall cease
10attempts, to influence the insured's or 3rd party's choice of garage, repair shop, or
11other vendor.
AB353-ASA1,4,1412 (d) An insurer may refer an insured or 3rd party making a claim under par. (b)
13to a particular garage, repair shop, or other vendor, or to a particular location, if, after
14the insurer satisfies the requirements under par. (b), any of the following occurs:
AB353-ASA1,4,1615 1. The insured or 3rd party indicates that he or she has not selected a garage,
16repair shop, or other vendor for the estimate or the repair.
AB353-ASA1,4,1717 2. The insured or 3rd party requests a referral from the insurer.
AB353-ASA1, s. 6 18Section 6. 632.37 (2) of the statutes is created to read:
AB353-ASA1,5,219 632.37 (2) Payment of repair costs. Except as otherwise agreed between the
20insurer and the garage, repair shop, or other vendor making the repair, an insurer
21that pays for the repair of a motor vehicle shall pay for the repair at the same rate
22the general public pays in the geographic area in which the repair is made for the
23same or a similar type of repair to the same or a similar type of motor vehicle. The
24insurer may not limit or discount the amount that the insurer pays for the repair on
25the basis that the repair would have cost less if it had been made at a particular

1garage, repair shop, or other vendor, or in a particular location, specified by the
2insurer.
AB353-ASA1, s. 7 3Section 7. 632.37 (3) of the statutes is created to read:
AB353-ASA1,5,94 632.37 (3) Damage inspection. Nothing in this section shall be construed as
5limiting an insurer's right or obligation to physically inspect a motor vehicle for the
6purpose of confirming or documenting damage to a motor vehicle that is the subject
7of a claim specified in sub. (1) (a). However, an insurer may not require that the
8inspection be conducted at a particular garage, repair shop, or other vendor or facility
9specified by the insurer.
AB353-ASA1, s. 8 10Section 8. Initial applicability.
AB353-ASA1,5,1311 (1) If a motor vehicle insurance policy that is in effect on the effective date of
12this subsection contains a provision that is inconsistent with this act, this act first
13applies to that motor vehicle insurance policy on the date on which it is renewed.
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