
Iowa governor signs auto glass AOB bill
By onAnnouncements | Business Practices | Collision Repair
Iowa’s governor has signed an assignment of benefits (AOB) bill that also requires calibrations for vehicles with ADAS.
SF573 would prohibit a motor vehicle glass repair shop that is compensated for the solicitation of insurance claims to offer any form of a rebate, gift, gift card, cash, coupon, fee, prize, bonus, payment, incentive, inducement or any other thing of value to any insured person, insurance producer or any other person in exchange for directing or making a claim offer under an insurance policy for repair or replacement of glass.
“An insured person that makes a first-party claim for repairing or replacing damaged motor vehicle glass under a motor vehicle insurance policy shall not be required to use a particular motor vehicle glass repair shop to be paid claim payments or receive other benefits under the policy,” the bill says.
It would also prohibit an insurer from maintaining a network of motor vehicle glass repair shops.
Motor vehicle glass repair shops would be required to notify the insured person of whether their vehicle has ADAS and whether calibration or recalibration is needed after a windshield repair or replacement.
The shop would be required to inform the insured if it plans to calibrate the windshield to OEM specifications, the bill says. If it is performed, the shop would have to provide notice if the calibration was successful.
If the shop cannot calibrate the vehicle correctly or a calibration is unsuccessful, it would need to advise the insured person to take the vehicle to a manufacturer’s certified dealership or qualified specialist, the bill says.
A shop in violation of the provisions would be deemed to have committed an unfair trade practice and could face penalties.
The National Council of Insurance Legislators (NCOIL) adopted a Vehicle Glass Act Model in February. The Independent Glass Association (IGA) released a formal rebuttal to the Model Act in March.
Last year, Kentucky passed legislation prohibiting AOB in the auto glass industry. It followed legislation passed in Florida in 2023.
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