UNOFFICIAL COPY AS OF 10/23/1813 REG. SESS.13 RS BR 1061
AN ACT relating to automobile safety equipment.
Be it enacted by the General Assembly of the Commonwealth of Kentucky:
SECTION 1. A NEW SECTION OF KRS CHAPTER 367 IS CREATED TO READ AS FOLLOWS:
(1)As used in this section, "safety equipment" has the same meaning as in KRS 304.20-060.
(2)It is an unlawful practice for a person who sells, repairs, or replaces safety equipment to:
(a)Knowingly submit a claim to an insurer or a third-party administrator for safety equipment repair, replacement, or for related services:
1.If the safety equipment was not damaged prior to repair or replacement to the extent that repair or replacement is warranted;
2.If the services were not provided;
3.Showing work performed in a geographical area that in fact was not the location where the services were provided and that results in a higher payment than would otherwise be paid to the person by the policyholder's insurer;
4.Without having authorization by the owner, lessee, or insured driver of the automobile for the repair of the automobile;
5.Showing work performed on a date other than the date the work was actually performed and resulting in a change of insurance coverage status; or
6.Making any other material misrepresentation related to any safety equipment;
(b)Advise a policyholder or another person to falsify the date of damage to the safety equipment that results in a change of insurance coverage for repair or replacement of the safety equipment;
(c)Falsely sign, on behalf of a policyholder or another person, a work order, insurance assignment form, or other related form in order to submit a claim to an insurer for safety equipment repair, replacement, or other related service;
(d)Knowingly misrepresent to a policyholder or another person:
1.The price of the proposed repair or replacement being billed to the policyholder's insurer;
2.That the insurer has authorized the repair or replacement of the glass of the insured automobile; or
3.That the repair or replacement of the glass will not increase the policyholder's premium or affect his or her insurance coverage;
(e)Represent to a policyholder or another person that the repair or replacement will be paid for entirely by the policyholder's insurer and at no cost to the policyholder unless the insurance coverage has been verified by an authorized representative of the insurer or a third-party administrator contracting with the insurer;
(f)Add to the damage of safety equipment before repair in order to increase the scope of repair or replacement or encourage a person to add to the damage of safety equipment before repair;
(g)Perform work clearly and substantially beyond the level of work necessary to repair or replace the safety equipment to return the automobile to a safe pre-loss condition;
(h)Waive or offer to waive, in whole or in part, the policyholder's deductible or offer a rebate, gift, gift card, cash, coupon, or anything of value to a third party in exchange for a referral of a policyholder to the repair facility in connection with any claim under an insurance policy; or
(i)Waive or offer to waive, in whole or in part, the policyholder’s deductible or offer a rebate, gift, gift card, cash, coupon, or anything of value to an insured in exchange for the insured filing a motor safety equipment claim under an insurance policy.
(3)It is unlawful for a person who sells or repairs and replaces safety equipment to intentionally misrepresent the relationship between the glass repair facility and the policyholder's insurer. For the purposes of determining whether a person intended the misrepresentation, the person presumably intended the misrepresentation if he or she was engaged in a regular and consistent pattern of misrepresentation.
(4)A safety equipment repair or replacement facility, including any contractor, vendor, representative, or anyone acting on its behalf, shall not:
(a)Threaten, coerce, or intimidate an insured to file a claim for safety equipment repair or replacement;
(b)Engage in unfair or deceptive practices to induce an insured to file a safety equipment repair claim;
(c)Induce an insured to file a safety equipment repair claim when the damage to the safety equipment is insufficient to warrant safety equipment repair or replacement;
(d)Perform safety equipment repair or replacement services under an insurance policy without first obtaining approval from an insurer or the insurer’s agent;
(e)Make any representation to an insured as to the safety equipment coverage available under the insurance policy, including but not limited to representation that the insured is entitled to a free windshield; or
(f)Represent verbally, electronically, or in any other way, including but not limited to advertisements, Web sites, or any marketing materials that a claim for a windshield replacement under an insurance policy is free.
(5)A violation of this section is subject to enforcement under this article.
(6)The Department of Insurance Division of Insurance Fraud Investigation may seek and obtain in an action in Circuit Court an injunction that prohibits a person from engaging in practices or doing any acts that violate this section. The court may enter any order or judgment that is necessary to:
(a)Prevent any act or practice that is unlawful under this section; and
(b)Return any moneys, interest, or real or personal property that was acquired by an act or practice that is unlawful under this section.
(7)If the court finds that a person has violated this section, the Department of Insurance Division of Insurance Fraud Investigation, on petition or complaint to the court, may recover from that person on behalf of the state a civil penalty of not more than five thousand dollars ($5,000) for each violation.
(8)In any action pursuant to this section, the court may award the Department of Insurance Division of Insurance Fraud Investigation costs, including reasonable attorney fees and investigative costs for the services rendered.
Section 2. KRS 304.20-060 is amended to read as follows:
(1)As used in this section, "safety equipment" shall mean only the glass used in the windshield, doors, and windows, and the glass, plastic, or other material used in the lights required by KRS Chapter 189 on any automobile.
(2)Any automobile insurance policy that provides comprehensive coverage, whether designated as such, or included within a broader coverage, shall provide complete coverage for repair or replacement of damaged safety equipment, without regard to any deductible or minimum amount. However, an insurer may offer a deductible for the replacement of damaged safety equipment, which shall be optional to the insured, shall not exceed one hundred dollars ($100) per occurrence, and shall be accompanied with a premium reduction actuarially justified in the insurer's rate filing, made pursuant to KRS 304.13-051.
[(3)This section shall apply to all policies issued after January 1, 1979. ]
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