LRBs0228/1
PJK:jld:nwn
2007 - 2008 LEGISLATURE
SENATE SUBSTITUTE AMENDMENT 3,
TO 2007 SENATE BILL 181
January 24, 2008 - Offered by
Committee on Transportation and Tourism.
SB181-SSA3,1,2
1An Act to create 632.375 of the statutes;
relating to: motor vehicle repair
2practices.
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. Under
this substitute amendment, an insurer that issues a motor vehicle insurance policy
that covers repairs to a motor vehicle is prohibited from: 1) requiring that repairs
be made by a particular contractor or repair shop as a condition for paying a claim;
and 2) failing to initiate or conclude with due dispatch an investigation of a claim for
repairs on the basis of whether the repair will be made by a particular contractor or
repair shop. The prohibitions under the substitute amendment do not apply to
insurance coverage of motor vehicle glass repair, to which current law still applies.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB181-SSA3,2,3
1632.375 Motor vehicle repair practices. (1) Scope. This section applies
2to every insurer that issues or delivers in this state a motor vehicle insurance policy
3that covers repairs to a motor vehicle registered or principally garaged in this state.
SB181-SSA3,2,6
4(2) Prohibited practices. (a) No insurer may require that, as a condition of
5paying a claim, repairs to a motor vehicle be made by a particular contractor or repair
6shop.
SB181-SSA3,2,97
(b) No insurer may fail to initiate or conclude with due dispatch an
8investigation of a claim for repairs to a motor vehicle on the basis of whether the
9repairs will be made by a particular contractor or repair shop.
SB181-SSA3,2,12
10(3) Inapplicability to glass repair. Section 632.37, rather than this section,
11applies to the repair or replacement of motor vehicle glass under a motor vehicle
12insurance policy.
SB181-SSA3,2,1614
(1) If a motor vehicle insurance policy that is in effect on the effective date of
15this subsection contains a provision that is inconsistent with this act, this act first
16applies to that motor vehicle insurance policy on the date on which it is renewed.
