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Kentucky governor signs bill eliminating AOB in auto glass industry

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Announcements | Legal
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Kentucky Gov. Andy Beshear signed legislation last week that prohibits an assignment of rights or benefits under a property or casualty insurance policy, and further regulates motor vehicle glass repair shops from offering incentivizing insureds or insurance producers in exchange for repairing auto glass insurance claims.

The bill, SB29, was introduced by Sen. Brandon Storm (R- District 21) Jan. 2. It passed the Senate Feb. 16 and House March 22. 

Auto Glass Safety Council (AGSC) said in a press release that the bill is similar to legislation passed in Florida last year that eliminates assignment of benefits (AOB). 

Seth Maiman, AGSC public affairs director, told, that other states could pass similar laws. 

“I think if auto glass operators engage in this type of solicitation that alarms consumer advocates, I think it’s possible [other states will adopt similar legislation],” he told the website. 

The bill essentially works to eliminate steering by making it illegal for anyone to receive compensation such as a rebate, gift, gift card, cash, coupon, fee, prize, bonus, incentive, or inducement to an insured or insurance producer in exchange for directing or making a claim for a repair or replacement of damaged motor vehicle glass. 

Glass shops also must get a claim referral number or waiver from customers, the bill says. 

Anyone replacing glass will also be required to inform customers if their vehicle has Advanced Driver Assistance Systems (ADAS) technology that requires recalibration. If the shop can’t perform a needed recalibration, the shop should take the vehicle to a certified dealership or qualified specialist capable of performing the calibration or recalibration, the bill says. 

The bill also states glass repair shops should not charge higher fees or costs than are reasonably customarily charged in Kentucky. 

According to the Sentinel Echo, the bill had an emergency designation meaning it immediately went into effect upon filing. Storm told the newspaper that he received a lot of support for the bill. 

“I think one of the best parts of being an elected official is the relationships we build in the process of doing positive things for our state and our communities,” Storm said in the article. “In the case of this bill, I enjoyed the collaborative efforts involved, which included working with a wide range of organizations like the Kentucky Farm Bureau Insurance, Safelite, the Kentucky Justice Association, the National Insurance Crime Bureau (NICB), and the Insurance Institute of Kentucky to make sure we got the language of the bill correct and that we had everyone on board.”

NICB advocated for the passage of Florida’s AOB law after starting a 2021 campaign that included public service announcements, focused on Auto Glass AOB fraud and abuse in the state. 


Photo courtesy of AndreyKrav/iStock

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