The National Council of Insurance Legislators (NCOIL) Property & Casualty Insurance Committee recently adopted a Motor Vehicle Glass Act Model that prohibits benefit assignment and requires shops to notify consumers of advanced driver assistance systems (ADAS) calibrations needed for the windshield repair or replacement. 

“I was proud to sponsor this Model as it is based on a law we passed in Kentucky in response to rising concerns about auto glass repair fraud which unfortunately is a growing trend across the country,” said Rep. Michael Sarge Polluck, in a press release. “Other states have already taken action and many more are certain to follow this year so I’m glad NCOIL was able to address the issue in an efficient manner to provide valuable guidance for states as they look for solutions.” 

Kentucky Gov. Andy Beshear signed a bill prohibiting the assignment of benefits in April of last year. Florida’s legislature passed a similar bill in 2023. 

The Model Act says insurance policies shall not either, prior to or after, a claimed or covered loss assign, delegate, or otherwise transfer, in whole or in part, to any other person the insured’s duties under the policy or their rights or benefits under the policy. 

In addition to notifying customers of ADAS system calibration needs, shops are also required to inform consumers if they intend to calibrate or recalibrate the ADAS in a manner that meets OEM specifications. 

Shops that are not capable of performing or do not intend to perform a calibration or recalibration should inform the consumer that the motor vehicle should be taken to the vehicle’s OEM-certified dealership or a qualified specialist capable of performing the calibration or recalibration. 

The act also requires shops to provide written notice to consumers stating whether a vehicle was or was not calibrated successfully. The notice should recommend the consumer take the vehicle to a dealership or qualified specialist if the vehicle is not properly calibrated. It should also advise the insured not to rely on the ADAS until it has been successfully calibrated. 

Repair shops are also prohibited from contracting with a consumer for a repair or replacement of vehicle glass to be paid for under a first-party insurance policy before the person makes a first-party claim for the repair under their insurance policy. The shop is also required to have received the claim or referral number before contracting the job. 

Under the Model Act, repair shops are required to provide insurers with an itemized invoice and receipt upon completion of the repair. It should also provide notice that states whether the ADAS was successfully calibrated. 

“The Model provides states with a framework to protect consumers by preventing deceptive practices and ensuring accountability and transparency in the auto glass repair process,” an NCOIL press release says. 

The Model will now be placed on the NCOIL Executive Committee’s consent agenda for final ratification during the NCOIL Spring Meeting in Charleston, South Carolina April 24-27.

“Having guardrails in place to prevent fraud and make sure consumers aren’t being taken advantage of is incredibly important, especially with something such as motor vehicle glass fraud which can quickly become an issue in any state at any time,” said NCOIL President Assemblywoman Pamela Hunter (NY), in the release. “It’s vital that we as state legislators are being proactive on issues like this and I will be watching with great interest as laws based on this Model are introduced in legislatures around the country.”

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