Capping Bill Passes California Assembly
7/16/2008 4:12:25 PM
The California Assembly approved the fifth revision of Senate Bill 1371 (Sen. Lou Correa, D-Santa Ana) – legislation designed to limit the insurance company practice of placing “caps,” arbitrary limits, on reimbursements for collision repairs – on Monday with a 75-0 vote.
In February, when the bill was introduced in the Senate, it stated, "No insurer shall recommend, apply, or include any arbitrary limit, cap, or threshold when adjusting labor, parts, or other material on any written automobile repair estimate."
In April, the Senate added a definition of capping to the bill. After several revisions, the Senate’s final version defined capping as “offering or paying an amount that is unrelated to an accepted industry methodology used in determining paint and materials charges.” This version was unanimously approved in April.
The bill next moved to the Assembly, where capping was finally defined in June as "offering or paying an amount that is unrelated to a methodology used in determining paint and materials charges that is accepted by automobile repair shops and insurers.” This revised version of the bill now must return to the Senate for re-approval.
To read our previous story about this bill, click HERE.