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Bill > S599


MA S599

Reforming labor rates paid by insurance companies to auto repairers in the Commonwealth


summary

Introduced
01/23/2017
In Committee
01/23/2017
Crossed Over
Passed
Dead
12/31/2018

Introduced Session

190th General Court

Bill Summary

For legislation to reform labor rates paid by insurance companies to auto repairers in the Commonwealth. Financial Services.

AI Summary

This bill proposes to reform the labor rates paid by insurance companies to auto repairers in the Commonwealth. It requires the Commissioner of Insurance to set a minimum hourly labor rate that insurers must pay on insured claims for repairs made by registered motor vehicle repair shops. The rate will be the average of the hourly rates paid by insurers for motor vehicle damage repairs in the surrounding states of Connecticut, New York, New Hampshire, Rhode Island, and Vermont, with the Commissioner having the discretion to adjust the rate by up to 3% above or below the average. The Commissioner must review and readjust the rate every 3 years, after providing a report to the Joint Committee on Financial Services 15 days before promulgation. The bill also specifies that these collision repair hourly labor rates shall not be included when considering programs to control costs and expenses under the relevant insurance laws.

Committee Categories

Business and Industry

Sponsors (4)

Last Action

Accompanied a study order, see S2524 (on 05/14/2018)

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