California Proposes Anti-Steering Regulation Focusing on Deceptive Statements
Posted on Mar 30, 2016 in Insurance Regulation | Comments Off on California Proposes Anti-Steering Regulation Focusing on Deceptive Statements
Through a recently proposed regulation, the California Department of Insurance seeks to amend the rules preventing insurers from steering claimants to specific auto repair shops. The proposed amendments relate to a variety of issues, such as when a claimant has “chosen” an automotive repair shop and what constitutes an unreasonable distance for a claimant to travel. The focus of the amendments, however, is on false or deceptive statements. The amendments set forth guidelines as to the kind of statements that are considered deceptive or misleading, such as advising the claimant that their chosen repair shop has a record of poor repair quality without clear documentation.
