Pe) BENT Consumers Lose With FENDER Senate Bill 617 If SB617* is enacted consumers will be the losers. ‘Consumers will lose insurance company repair guarantees ‘Consumers will experience higher auto insurance premiums Consumers will experience higher repair costs and more out of pocket expense. Consumers will lose customer services provided in their policy. Consumers will lose the insurance companies industry experts oversight of their repair. What you should know about SB617 Senate Bill 617 revises ORS 646.608 and would prohibit insurance companies from entering into a contract with a person performing a service or repair on a motor vehicle, ‘This is aimed at eliminating the direct repair, customer care, and repair guarantee programs developed by your company for the benefit of your clients. Consumers lose. Senate Bill 617 would prohibit insurance companies from influencing, directing or suggesting to a person performing a service or repair on a motor vehicle to alter a recommendation as to how the vehicle owner's service or repair is performed, including the cost of the service or repair. Cooperative information sharing between repair businesses and insurance companies will end. It may also eliminate the use of recycled or aftermarket parts that are called for in the policy contract. Prohibit- ing negotiations between repairer, consumer and insurance company during the course of repair that may affect parts usage or repair methodology will offer opportunity for unrealistic pricing that would adversely affect future premiums. It may also create a large unexpected expense for the policy holder since the owner of the vehicle is financially responsible for the difference between what their policy covers and the cost of repair. Consumers lose. *Consumers Lose with SB617. Protect your clients; contact your state senator. Go to www.leg.state.or.us/writelegsltr/. Fill out the form and send a message; the website will automatically direct it to your State Senator. To find links for the original text of SB617 or to write your legislative representatives go to http:/ /www.kadels.com/LinksResources.asp_ 12 Convenient Locations 1-888-4-KADELS or www.kadels.comWhat you should know about SB617 ‘Senate Bill 617 would prohibit insurance companies from maintaining an office, cubicle, desk or other space on the premises of the person performing the service or repair or within 100 feet of the premises of a person performing the service or repair. Insurance companies would be prohibited from having a Drive-In or an onsite adjuster at a repair shop. Insurance companies pick repair shops located throughout their service area to use as a Drive-In Claims office. This is a customer service that speeds up the claim settlement process providing a con- venience for your customer. SB617 is unnecessary because current law already stipulates that the ve- hicle owner has the right to choose the repair facility and insurance companies cannot steer business to the repair shops that house the Drive-In, Consumers Lose. ‘The following is the summary of Senate Bill 617; only the bolded words constitute the addendum to Oregon Revised Statute ORS 646.608. The current Oregon Revised Statute ORS 646.608 may be re- viewed by following the link Oregon Senate Bill 617 at http://www. kadels.com/LinksResources.asp. "75th OREGON LEGISLATIVE ASSEMBLY. 2009 Regular Sesion Senate Bill 617 ‘Sponsored ty COMMITTEE ON CONSUMER PROTECTION AND PUBLIC AFFAIRS SUMMARY ‘The following summary is mot prepared by the sponsors ofthe measure and is not apart of the body thereof subject to consideration bythe Legislative Assembly. Its an edifors brief statement ofthe essential features ofthe measure as Introduced. Prohibits insurers and other financially intrested third parties from influencing motor vehicle service and repair decisions and practices. Declares violation o be unlawful trade practice, ABILL FOR AN ACT Relating to motor vehicle repairs; creating new provisions; and amending ORS 646.608, Be It Enacted by the People of the State of Oregon: ‘SECTION 1. Section 2 ofthis 2009 Act is added to and made a part ofthe Insurance Code. ‘SECTION 2. (1) Except as provided in subsection (2) of this section, an insurer or any other person who has a financial interest n the servicing or repairing of a motor vehicle may not: (2) Enter into a contract with a person performing a service or repair for the motor vehicle () Influence, direct or suggest toa person performing a service or repair on a motor vehicle to alter a recommendation as to how the vehicle owner's service or repair is performed, including the cost of ‘the service or repair. (©) Maintain an office, cubicle desk or other space on the premises of the person performing the service or repair or within 100 feet ofthe premises of a person performing the service or repair. {@) Subsection (1) of this section does not apply to: (2) The owner of the motor vehicle. (®) The spouse, parent, sibling or child of the owner of the motor vehicle. (© A parent, sibling or ehild of the spouse of the owner of the motor vehicle. G) Subsection (1)(¢) of this seetion does not apply to the owner or manager ofthe business where the service or repair is being performed or to an employee or agent of the owner or manager. (4) A violation of subsection (1) ofthis section isan unlawful trade practice subject to ORS. 646.608. Consumers Lose with SB617. Protect your clients; contact your State Senator. Go to www.leg.state.or.us/writelegslt1/. Fill out the form and send a message; the website will automatically direct it to your State Senator. To find links for the original text of SB617 or to write your State Senator go to hittp:/ /www kadels com/LinksResources.as}