The Independent Glass Association (IGA) recently released a formal rebuttal to the Vehicle Glass Act Model adopted by the National Council of Insurance Legislators (NCOIL) last month. 

IGA says the act unfairly favors insurers, restricts consumer choice, and threatens the viability of independent glass businesses. 

The act was adopted by the Property and Casualty Insurance Committee Feb. 14 and could see final ratification April 27. 

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. 

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

Under the Model Act, repair shops must provide insurers with an itemized invoice and receipt upon completion of the repair. 

“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. 

Shops would have to notify consumers about ADAS system calibration needs and inform consumers if they intend to calibrate or recalibrate the ADAS in a manner that meets OEM specifications. 

The act also requires a 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. 

IGA says the model act allows insurers to dictate pricing structures and steering mechanisms that favor their preferred networks, limiting consumer freedom in choosing a service provider. 

“By enabling insurers to set reimbursement rates without proper negotiation, independent glass shops are forced to accept below-market compensation, threatening their Sustainability,” IGA says in their rebuttal. 

It adds that the act “appears to support steering,” which would reduce competition and consumer options.

Safety and quality concerns are another issue with the model, the rebuttal says. 

“Independent glass shops adhere to strict safety regulations and OEM guidelines, which may not be a priority for cost-cutting insurer networks,” the rebuttal says. “Any model legislation should prioritize consumer safety over insurer cost savings.”

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