Hi guys: It's SF 2372 (not 2373). I think this is causing some confusion. I just talked with Rick Rosar of Minnesota-based Rapid Glass. They expect the amendment to be introduced at the Commerce Committee hearing today in about an hour. It's not yet in the language of the proposed bill. Representatives from various state glass shops have shown up in force with uniforms on and a few plan to testify. Stay tuned to glassBYTEs.com as we'll be doing a quick write up once the hearing is over to share more. But basically, insurers are trying to eliminate consolidated arbitration, which is how glass shops in the state usually go after short pays after getting permission to consolidate in District Court. Hope this helps to clarify.
AH Gary, this is a week late a a few million short. Those of us in the trenches who found this and have spent the last 4-5 days working on this day and night, have stayed away from posting this because we caught it and maybe just IN THE NICK OF TIME TO STOP IT. I guess at this point maybe we don't care if the parties involved who are trying to slip this piece of crap into a FRAUD bill, can't stop the opposition. But those of us involved have stayed away from posting on an open forum for a reason. We didn't want them to know we were on to this crap. They wanted to catch us sleeping and didn't. Tomorrow will tell.
Any Mn shops who care about the future better show up at the capitol at 10:30 am Go to IGA website to find the scoop.
This will make a difference ALL over this country whether independent shops can survive.
This is the biggest event for the industry to date. It will make or break MN shops and all others will fall in the after- math. NO JOKE!
Bottom line any independent shops within driving range to the Twin Cities of MPLS and St. Paul better show up At the Capitol well Before Noon. GO to IGA and get details.
I have over 35 Mn representatives that have been contacted. Bottom line: If we succeed we have a chance. if we fail, auto glass in MN is doomed for all independents.
I was wondering who was going to post this first. We might be just in the nick of time or it will be too late for ALL independent shops.
Time will tell..... stay tuned...
Here is a link to the bill is question: http://www.senate.leg.state.mn.us/bills/billinf.php?ls=88&all_sessions=Y
A copy of the proposed amendment can be found at http://tinyurl.com/stopsf2373amendment along with other materials related to the campaign.
Thanks,
Gary Hart
Executive Director
Independent Glass Association
Just for a bit more clarity. The BILL is not the issue. The amendment to the bill is. They are trying to slide this in with hopes that no one is looking. Now one might say this is only about consolidating invoices to arbitrate. But if you read deeper at the top and bottom this,it may in fact effect who, how and even if we can continue to arbitrate. They want to try and stop the assignment of proceeds.
They can't beat us legally so they are trying to beat us legislatively.
Here is the bad part of the amendment:
Claims for basic
economic loss benefits submitter for arbitration must be commenced only by an insured
sustaining covered losses arising out of the use of a motor vehicle. (hmmm??)
(b) An individual claim against a reparation obligor for comprehensive or collision
damage may be submitted pursuant to this section. Any assigned claims against a
reparations obligor for comprehensive or collision damage coverage that are aggregated
or consolidated with more than one individual claim shall not be submitted to binding
arbitration under this section regardless of the jurisdictional dollar limitation in paragraph
(a). Nothing within this section shall preclude an assignment of benefits assignee from
seeking to aggregate or consolidate comprehensive or collision damage claims in an
action in District Court. ( more HMMM??)
I would like to add to this also. I spoke with Vicki Jensen, the author of the bill, and she claims that this will not limit the ability to arbitrate ( which I have issue with). She also added that the people that she met with, wanted to have the insured be involved with any future arbitrations as well. You can draw your own conclusions from that. Please continue to keep us up to date on what is happening. I wish I could have attended but had prior engagements.
A major hurdle has been cleared. The arbitration language has been taken out of the bill by the author of the bill. There is still a chance it can be introduced in the house but that is unlikely.
A big thanks to everyone who helped with this!
Thanks,
Gary Hart
Executive Director
Independent Glass Association
Hi guys: Here's the article on the Minnesota situation. The glassBYTEs.com e-newsletter should be hitting your inbox momentarily.
MN Glass Shops Say No to Bill Amendment Designed to Halt Consolidated Arbitrations
http://www.glassbytes.com/2014/03/mn-glass-shops-say-no-to-bill-amendment-designed-to-halt-consolidated-arbitrations/
Senator Vicki Jensen did also day that she planned to introduce a bill next session that would help fight against steering. Hopefully it pans out the way she made it sound. We can keep our fingers crossed.
When pigs fly. Why would an insurance agent who introduced an amendment aimed at stopping arbitrations care about steering? If she introduces something to "stop steering" you can be sure she'll be ready to sneak something in that will kill us.
Y2K prices were well over 50% higher. Safelite has devastated fair and reasonable pricing in order to gain market share. And Nags and the insurance industry has helped them.
Gary, Please go back and reread. I didn't say Safelite had a monopoly.
I said Safelite Solutions, LLC did. You don't have to have 100% to be considered a monopoly or to have "monopoly power". In my opinion, Safelite Solutions, LLC has enough of the auto glass claims administration market (not repair and replacement market) to qualify as a monopoly. I based my opinion from a sample of thousands of 2013 claims and found that Safelite handled 78%. This entity operates a network and controls who can participate and is known to reject applications if in their opinion "the region already has enough repair and replacement facilities." (Barrier to entry, discrimination, anti-competitive to say the least.) Way too much control!
Gary, where are you getting your numbers? If Safelite Solutions, LLC doesn't handle the largest claim volume, then which of their TPA competitors does? I think State Farm only has 18-20% of the auto coverage market and they only waive deductibles for repair in TX and a few other states that require glass coverage riders to be offered, so I stand by my statement. Remember total claim volume includes both repair and replacement claims.
GAI? Guaranteed Average Invoice. The winner of this scheme is the one that does the most repair claims to bring down the average. Of course the insurance companies have done their best to depress and retard repair pricing. Some in recent years moving to flat rate.
Gary, When someone comes into my shop for service, it is none of my competitors (or their affiliates)business. The names of my customers are my business not my competitors. What kind of service I provide for my customers is my business not my competitors. How much I charge for my service is my business not my competitors. The insurance company didn't contract for my services. Their policyholder, my customer did. The insurance company has no business forcing me to deal with a third party that has financial ties to one of my competitors. I rest my case.
jb I don't think anyone with any common sense would disagree with what you are saying including our senators & congressman our system is corrupted by special interest and lobbyist, no one will ever convince me that a direct competitor will not use proprietary information to their advantage (collecting personal info e-mails etc.)having all this info creates many advantages like knowing where to concentrate your sales force advertise etc. We here in south Carolina got a law passed that had some workable language in it,but no one seem's to care that it's being ignored.The first thing the tpa is supposed ask is do you have a shop of preference I ask people all the time if they ask and say they ask if they want to use the company that there insurance company uses, and if they do have a shop of preference they start a commercial of all the advantages of using the company there insurance company uses. I've tried to convince people that customize offers and network participation hurts our argument against unfair treatment but I have to tell ya no one really seems care. after 34 years I'm on the home stretch of my career but these guys in their 20's 30's and 40's better have a plan B for making a living because if people don't wake all that will be left for independents will be r & r's and used car lots.
Gary,
Are you still there?
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