FROM: The Board of Directors and the Executive Staff May 30, 2001
Attention All LIABRA Body Shops -

Cost, Competition, Quality and Service are Seriously Threatened. Senate Bill S-5367 is the Governor’s anti-fraud bill. It reads in part “…the insurer shall, where practicable, furnish the insured with the name and addresses of at least four independent New York State registered motor vehicle repair shops properly equipped and otherwise qualified to complete the repairs on the damaged motor vehicle…Such shops shall…issue written guarantees that any work performed in repairing damaged motor vehicles meets generally accepted standards for safe and proper repairs…If any repair shop,
the name of which is furnished by the insurer to the insured, does not repair the damaged motor vehicle in accordance with generally accepted standards…and if the repair shop fails to honor its guarantee, the insurer shall, as long as the insured owns the vehicle, cause the damaged vehicle to be restored to its condition immediately prior to the loss, at no additional cost to the insured and within a reasonable time…If the motor vehicle is repaired, it must be made available for inspection, as a condition of payment of the claims before, during, and after repairs.” You can view it in its entirety by visiting the NYS Assembly web site and searching the bill number.

This is “managed care/total control” for collision repair. AS WRITTEN THE
INSURANCE COMPANY WILL PICK WHICH SHOPS WILL PARTICIPATE! This bill is due to the pressure to reduce the high cost of insurance in N.Y. This bill is being
promoted as an anti-fraud bill, and although we support the effort to reduce insurance fraud you must make it clear that our industry is not the cause of the high cost of insurance in N.Y. State. This bill would offer the consumer the option of a managed care policy for the physical damage/comprehensive portion of the policy. The average savings with a 10-15% discount would be $50-60 per year. This bill will cause the consumer not to save $ but to get poor quality repairs, imitation parts and put many repair shops out of business. YOU MUST MAKE YOUR VOICE HEARD OR RISK THE LEGISLATURE MAKING A DECISION THAT THREATENS YOUR BUSINESS. CALL your legislator’s office for an appointment and then follow-up by putting this letter on your business letterhead, personalize it as you see fit or send as is. FAX to your Senator and Assembly person. If you are confused as to your legislators, send it to all in your vicinity as well as to Majority leader in the Senate-Senator Joseph Bruno-Fax-518-455-2448 and Speaker of the Assembly Sheldon
Silver-Fax-518-455-5459 but do it today! The legislative session is scheduled to end on June 20th.

• USING THE LIST ATTACHED PLEASE CALL FOR AN APPOINTMENT AND GO TALK TO YOUR SENATOR & ASSEMBLY PERSON IN THEIR OFFICE DO NOT DELAY.
GET CALLING YOUR LOCAL LEGISLATORS TODAY ALSO HAVE YOUR EMPLOYEES FRIENDS & FAMILY CALL, FOLLOW UP IN A WEEK AND ASK FOR AN UPDATE. WE ARE NOT THE CAUSE OF THE HIGH COST OF INSURANCE !!
GET THE WORD OUT ON THIS. LET THE LEGISLATORS KNOW THIS IS BAD FOR CONSUMERS, BAD FOR THE COLLISION REPAIR INDUSTRY AND WILL ONLY LINE THE POCKETS OF THE INSURANCE COMPANIES. IF THIS BILL IS PASSED INTO LAW IT WOULD GIVE THE INSURANCE INDUSTRY EVEN MORE LEVERAGE ON A SYSTEM THAT STIFLES HONEST QUALITY
REPAIRS WITH ALREADY UNREALISTIC HOURLY RATES AND SUB-STANDARD IMITATION PARTS. PASS THIS ON, MAKE SURE YOUR FELLOW SHOP OWNERS ACT.

Date
Dear Senator (Assemblyman/woman):

I am writing to you to express my deep concern for the future of the automobile repair industry in this State. I am referring, specifically, to a legislative proposal which gives complete control of (my) repair shop(s) over to insurance companies under the guise of offering consumers a reduction in their premiums!
I (operate/am employed by) ___________________shop located in (city, town, village) in (NYC, the Island, Western-Central New York, etc.). I am concerned that if these legislative proposals are enacted, approximately half of the collision repair shops throughout the State, including mine, could be forced out of business!
The Governor has introduced an anti-fraud bill Senate S.5367 which offers motorists an unknown “actuarially appropriate” discount on only the physical damage/comprehensive portion of their automobile policy. This would amount to an average savings of $50 to $60 per year.This in exchange for assurances that any and all repairs would be made at a specified motor vehicle shop selected from a short list of shops designated by the insurance company. This will do nothing more than control the repair industry by strangling competition and making repair shops and consumers captives of the insurance industry.
What about free enterprise? If a repair shop is not selected by the insurance company for their “ preferred list ” then what?

We support the Governor’s attempt to lower insurance rates, we are consumers also. However the auto collision industry is not the cause of the high cost of insurance in our state. I am mystified how any legislator could support a measure which jeopardizes so many jobs within New York State. If New York is “friendly to small business” as Governor Pataki says, why would the legislature consider any bill that would close down so many of the State’s quality auto body repair shops?

What about freedom to choose?

Although this proposal purports to provide consumers with a choice for a small undetermined savings while still receiving quality benefits, how is there any protection for the consumer? The listed repair shop would be under the insurance company’s thumb to repair the vehicle according to their “guidelines” and procedures. If the repairer disagrees they would be threatened with removal. What type of parts will be required if the insurer has this type of control? How can quality of service be assured when selection on the “list” drives shops to offer bigger discounts to the insurance company as a prerequisite to participate. These savings of course, will not in the long term, be passed along to the consumer!

I urge you to oppose the section of S.5367 that gives the insurance
company total control over the repair and spare the consumer and automobile
repair shops you have come to depend upon for quality repairs! Wouldn’t you
want to choose where your family automobile is repaired?