SB 137 – Prohibits insurers from owning auto repair shops and prohibits the use of referral fees for using such shops

• Sponsor: Taylor
• LR Number: 0563L.01I
• Committee: Small Business, Insurance & Industrial Relations
• Last Action: 1/13/2005 - Second Read and Referred S Small Business, Insurance & Industrial Relations Committee
• Journal Page: S85
• Effective Date: August 28, 2005

Current Bill Summary

SB 137 - This act prohibits insurers from acquiring or maintaining any ownership interest in auto body repair shops, windshield repair shops or replacement shops. Any insurer that currently has an ownership interest in such a repair shop shall divest itself of the interest by August 28, 2008. This act also prohibits insurers from offering incentives or providing compensation to a person for the purpose of rewarding that person for referring an insured to an auto repair shop in which the insurer maintains an ownership interest. A violation of this act shall constitute a unlawful trade practice under Chapter 407.

STEPHEN WITTE