Tennessee House Bill HB0756

Tennessee 2023-2024 Regular Session

• Introduced: 1/30/23
• Refer: 2/2/23

Caption

AN ACT to amend Tennessee Code Annotated, Title 56, relative to insurance.

Impact

The implementation of HB0756 signifies a shift in the regulatory landscape for insurance and motor vehicle repairs within Tennessee. By stipulating that insurers must provide a clear explanation of the various body part options available for vehicle repairs, the bill seeks to empower consumers and enhance their decision-making capabilities regarding their insurance claims. This is anticipated to foster a more informed consumer base that can make choices aligning with their preferences and financial situations. Furthermore, the bill introduces penalties for insurers who fail to comply with these notice requirements, categorizing such violations as unfair claims practices under existing Tennessee law.

Summary

House Bill 0756 aims to enhance consumer rights in the context of motor vehicle repairs by mandating that insurance companies provide written notice to insured individuals regarding their options for body parts used in repairs. This bill requires insurers to inform consumers about their right to approve the type of body parts, including new parts from the original equipment manufacturer (OEM), aftermarket parts, or used parts, thereby giving consumers a better understanding of their choices when dealing with body shops. The bill is positioned as a means to promote transparency and protect the rights of insured individuals during the claims process.

Contention

While proponents of HB0756 argue that the bill is a significant step towards protecting consumer interests, there are concerns regarding the potential pushback from insurance companies and body shops. Some critics may argue that mandating such disclosures could complicate the claims process or lead to increased costs for insurers, which could indirectly affect consumers through higher premiums. Additionally, there may be discussions about the feasibility of compliance for smaller repair shops that may face challenges in providing extensive choices or options to every consumer. Balancing these interests will be crucial in the legislative process surrounding this bill.