CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION Assembly Bill No. 1538Introduced by Assembly Member WeberFebruary 22, 2019 An act to amend Section 560 of the Insurance Code, relating to insurance. LEGISLATIVE COUNSEL'S DIGESTAB 1538, as introduced, Weber. Automobile collision coverage: payment for repairs.Existing law requires an insurer issuing an automobile collision policy or a policy for comprehensive coverage for a motor vehicle to make the payment in a specified manner if the covered automobile is damaged and the insurer elects to have the automobile repaired.This bill would make that requirement apply to a policy for automobile physical damage coverage, instead of comprehensive coverage, and would state that these provisions do not limit the right of an insured to select the auto body repair shop or other repair facility to repair the damaged vehicle, or to decide not to have the vehicle repaired. The bill would prohibit an insurer from withholding the payment of reasonable repair cost benefits that are payable under the policy if the insured decides not to have the vehicle repaired. The bill would also make technical changes.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 560 of the Insurance Code is amended to read:560. Every insurer issuing an automobile collision policy, (a) An insurer that issues a policy providing automobile collision coverage, as defined in subdivision (d) of Section 660, or a policy for comprehensive coverage for a motor vehicle, as defined in Section 11580.07, automobile physical damage coverage, as defined in subdivision (c) of Section 660, shall, in the event of damage to a covered automobile by collision or otherwise and the election by the insurer to have such the automobile repaired by the repairer, make payment by check or draft, payable to the repairer or to the named insured and the repairer, jointly, or, with the consent of the repairer, by an electronic funds transfer to the repairer, not later than 10 days subsequent to receipt of an itemized bill or invoice covering repairs authorized by the insurer which have been satisfactorily completed. The provisions of this section shall include all cases where This section applies if the insured has received actual notice that the repairer is doing work pursuant to a contract approved by the insurance company in which case and, in that case, the payment shall include the name of the repairer.(b) This section does not limit the right of an insured to select, or prohibit an insured from selecting, the auto body repair shop or other repair facility to repair the damaged vehicle, as described in Section 758.5, nor does it limit the right of an insured to decide, or prohibit an insured from deciding, not to have the vehicle repaired. If the insured decides not to have the vehicle repaired, the insurer shall not withhold the payment of reasonable repair cost benefits that are payable under the policy.
CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION Assembly Bill No. 1538Introduced by Assembly Member WeberFebruary 22, 2019 An act to amend Section 560 of the Insurance Code, relating to insurance. LEGISLATIVE COUNSEL'S DIGESTAB 1538, as introduced, Weber. Automobile collision coverage: payment for repairs.Existing law requires an insurer issuing an automobile collision policy or a policy for comprehensive coverage for a motor vehicle to make the payment in a specified manner if the covered automobile is damaged and the insurer elects to have the automobile repaired.This bill would make that requirement apply to a policy for automobile physical damage coverage, instead of comprehensive coverage, and would state that these provisions do not limit the right of an insured to select the auto body repair shop or other repair facility to repair the damaged vehicle, or to decide not to have the vehicle repaired. The bill would prohibit an insurer from withholding the payment of reasonable repair cost benefits that are payable under the policy if the insured decides not to have the vehicle repaired. The bill would also make technical changes.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NO
CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION
Assembly Bill No. 1538
Introduced by Assembly Member WeberFebruary 22, 2019
Introduced by Assembly Member Weber
February 22, 2019
An act to amend Section 560 of the Insurance Code, relating to insurance.
LEGISLATIVE COUNSEL'S DIGEST
## LEGISLATIVE COUNSEL'S DIGEST
AB 1538, as introduced, Weber. Automobile collision coverage: payment for repairs.
Existing law requires an insurer issuing an automobile collision policy or a policy for comprehensive coverage for a motor vehicle to make the payment in a specified manner if the covered automobile is damaged and the insurer elects to have the automobile repaired.This bill would make that requirement apply to a policy for automobile physical damage coverage, instead of comprehensive coverage, and would state that these provisions do not limit the right of an insured to select the auto body repair shop or other repair facility to repair the damaged vehicle, or to decide not to have the vehicle repaired. The bill would prohibit an insurer from withholding the payment of reasonable repair cost benefits that are payable under the policy if the insured decides not to have the vehicle repaired. The bill would also make technical changes.
Existing law requires an insurer issuing an automobile collision policy or a policy for comprehensive coverage for a motor vehicle to make the payment in a specified manner if the covered automobile is damaged and the insurer elects to have the automobile repaired.
This bill would make that requirement apply to a policy for automobile physical damage coverage, instead of comprehensive coverage, and would state that these provisions do not limit the right of an insured to select the auto body repair shop or other repair facility to repair the damaged vehicle, or to decide not to have the vehicle repaired. The bill would prohibit an insurer from withholding the payment of reasonable repair cost benefits that are payable under the policy if the insured decides not to have the vehicle repaired. The bill would also make technical changes.
## Digest Key
## Bill Text
The people of the State of California do enact as follows:SECTION 1. Section 560 of the Insurance Code is amended to read:560. Every insurer issuing an automobile collision policy, (a) An insurer that issues a policy providing automobile collision coverage, as defined in subdivision (d) of Section 660, or a policy for comprehensive coverage for a motor vehicle, as defined in Section 11580.07, automobile physical damage coverage, as defined in subdivision (c) of Section 660, shall, in the event of damage to a covered automobile by collision or otherwise and the election by the insurer to have such the automobile repaired by the repairer, make payment by check or draft, payable to the repairer or to the named insured and the repairer, jointly, or, with the consent of the repairer, by an electronic funds transfer to the repairer, not later than 10 days subsequent to receipt of an itemized bill or invoice covering repairs authorized by the insurer which have been satisfactorily completed. The provisions of this section shall include all cases where This section applies if the insured has received actual notice that the repairer is doing work pursuant to a contract approved by the insurance company in which case and, in that case, the payment shall include the name of the repairer.(b) This section does not limit the right of an insured to select, or prohibit an insured from selecting, the auto body repair shop or other repair facility to repair the damaged vehicle, as described in Section 758.5, nor does it limit the right of an insured to decide, or prohibit an insured from deciding, not to have the vehicle repaired. If the insured decides not to have the vehicle repaired, the insurer shall not withhold the payment of reasonable repair cost benefits that are payable under the policy.
The people of the State of California do enact as follows:
## The people of the State of California do enact as follows:
SECTION 1. Section 560 of the Insurance Code is amended to read:560. Every insurer issuing an automobile collision policy, (a) An insurer that issues a policy providing automobile collision coverage, as defined in subdivision (d) of Section 660, or a policy for comprehensive coverage for a motor vehicle, as defined in Section 11580.07, automobile physical damage coverage, as defined in subdivision (c) of Section 660, shall, in the event of damage to a covered automobile by collision or otherwise and the election by the insurer to have such the automobile repaired by the repairer, make payment by check or draft, payable to the repairer or to the named insured and the repairer, jointly, or, with the consent of the repairer, by an electronic funds transfer to the repairer, not later than 10 days subsequent to receipt of an itemized bill or invoice covering repairs authorized by the insurer which have been satisfactorily completed. The provisions of this section shall include all cases where This section applies if the insured has received actual notice that the repairer is doing work pursuant to a contract approved by the insurance company in which case and, in that case, the payment shall include the name of the repairer.(b) This section does not limit the right of an insured to select, or prohibit an insured from selecting, the auto body repair shop or other repair facility to repair the damaged vehicle, as described in Section 758.5, nor does it limit the right of an insured to decide, or prohibit an insured from deciding, not to have the vehicle repaired. If the insured decides not to have the vehicle repaired, the insurer shall not withhold the payment of reasonable repair cost benefits that are payable under the policy.
SECTION 1. Section 560 of the Insurance Code is amended to read:
### SECTION 1.
560. Every insurer issuing an automobile collision policy, (a) An insurer that issues a policy providing automobile collision coverage, as defined in subdivision (d) of Section 660, or a policy for comprehensive coverage for a motor vehicle, as defined in Section 11580.07, automobile physical damage coverage, as defined in subdivision (c) of Section 660, shall, in the event of damage to a covered automobile by collision or otherwise and the election by the insurer to have such the automobile repaired by the repairer, make payment by check or draft, payable to the repairer or to the named insured and the repairer, jointly, or, with the consent of the repairer, by an electronic funds transfer to the repairer, not later than 10 days subsequent to receipt of an itemized bill or invoice covering repairs authorized by the insurer which have been satisfactorily completed. The provisions of this section shall include all cases where This section applies if the insured has received actual notice that the repairer is doing work pursuant to a contract approved by the insurance company in which case and, in that case, the payment shall include the name of the repairer.(b) This section does not limit the right of an insured to select, or prohibit an insured from selecting, the auto body repair shop or other repair facility to repair the damaged vehicle, as described in Section 758.5, nor does it limit the right of an insured to decide, or prohibit an insured from deciding, not to have the vehicle repaired. If the insured decides not to have the vehicle repaired, the insurer shall not withhold the payment of reasonable repair cost benefits that are payable under the policy.
560. Every insurer issuing an automobile collision policy, (a) An insurer that issues a policy providing automobile collision coverage, as defined in subdivision (d) of Section 660, or a policy for comprehensive coverage for a motor vehicle, as defined in Section 11580.07, automobile physical damage coverage, as defined in subdivision (c) of Section 660, shall, in the event of damage to a covered automobile by collision or otherwise and the election by the insurer to have such the automobile repaired by the repairer, make payment by check or draft, payable to the repairer or to the named insured and the repairer, jointly, or, with the consent of the repairer, by an electronic funds transfer to the repairer, not later than 10 days subsequent to receipt of an itemized bill or invoice covering repairs authorized by the insurer which have been satisfactorily completed. The provisions of this section shall include all cases where This section applies if the insured has received actual notice that the repairer is doing work pursuant to a contract approved by the insurance company in which case and, in that case, the payment shall include the name of the repairer.(b) This section does not limit the right of an insured to select, or prohibit an insured from selecting, the auto body repair shop or other repair facility to repair the damaged vehicle, as described in Section 758.5, nor does it limit the right of an insured to decide, or prohibit an insured from deciding, not to have the vehicle repaired. If the insured decides not to have the vehicle repaired, the insurer shall not withhold the payment of reasonable repair cost benefits that are payable under the policy.
560. Every insurer issuing an automobile collision policy, (a) An insurer that issues a policy providing automobile collision coverage, as defined in subdivision (d) of Section 660, or a policy for comprehensive coverage for a motor vehicle, as defined in Section 11580.07, automobile physical damage coverage, as defined in subdivision (c) of Section 660, shall, in the event of damage to a covered automobile by collision or otherwise and the election by the insurer to have such the automobile repaired by the repairer, make payment by check or draft, payable to the repairer or to the named insured and the repairer, jointly, or, with the consent of the repairer, by an electronic funds transfer to the repairer, not later than 10 days subsequent to receipt of an itemized bill or invoice covering repairs authorized by the insurer which have been satisfactorily completed. The provisions of this section shall include all cases where This section applies if the insured has received actual notice that the repairer is doing work pursuant to a contract approved by the insurance company in which case and, in that case, the payment shall include the name of the repairer.(b) This section does not limit the right of an insured to select, or prohibit an insured from selecting, the auto body repair shop or other repair facility to repair the damaged vehicle, as described in Section 758.5, nor does it limit the right of an insured to decide, or prohibit an insured from deciding, not to have the vehicle repaired. If the insured decides not to have the vehicle repaired, the insurer shall not withhold the payment of reasonable repair cost benefits that are payable under the policy.
560. Every insurer issuing an automobile collision policy, (a) An insurer that issues a policy providing automobile collision coverage, as defined in subdivision (d) of Section 660, or a policy for comprehensive coverage for a motor vehicle, as defined in Section 11580.07, automobile physical damage coverage, as defined in subdivision (c) of Section 660, shall, in the event of damage to a covered automobile by collision or otherwise and the election by the insurer to have such the automobile repaired by the repairer, make payment by check or draft, payable to the repairer or to the named insured and the repairer, jointly, or, with the consent of the repairer, by an electronic funds transfer to the repairer, not later than 10 days subsequent to receipt of an itemized bill or invoice covering repairs authorized by the insurer which have been satisfactorily completed. The provisions of this section shall include all cases where This section applies if the insured has received actual notice that the repairer is doing work pursuant to a contract approved by the insurance company in which case and, in that case, the payment shall include the name of the repairer.
(b) This section does not limit the right of an insured to select, or prohibit an insured from selecting, the auto body repair shop or other repair facility to repair the damaged vehicle, as described in Section 758.5, nor does it limit the right of an insured to decide, or prohibit an insured from deciding, not to have the vehicle repaired. If the insured decides not to have the vehicle repaired, the insurer shall not withhold the payment of reasonable repair cost benefits that are payable under the policy.