Volume 10, Issue 5 - September/October 2008

legal updates

California Senate
Approves Anti-Steering Bill

THE CALIFORNIA SENATE HAS approved an anti-steering bill that would convene a task force “to review the issues arising from the implementation of [the bill’s] requirements.”

The task force, to be formed by the insurance commissioner, would report its findings in writing to the legislature by December 31, 2009.

In addition, if passed, the bill will amend Section 758.5 of the state’s insurance code to require insurers to ask policyholders if they have chosen a repair shop prior to suggesting one.

The California Assembly passed the bill on July 15, before it proceeded to the Senate. The bill, titled S.B. 1167, now awaits the approval of Gov. Arnold Schwarzenegger.

The bill was introduced on February 7 by Sen. Patricia Wiggins and Sen. Carole Migden.

Iowa Bill Would Create
Consumer Advocate Bureau
A bill that will create a consumer advocate bureau in Iowa was signed into law on April 25 by Gov. Chet Culver. The bill, House File 2555, deals with a number of issues relating to the Iowa Insurance Department.

Under the text of the bill, the consumer advocate bureau will be “responsible for ensuring fair treatment of consumers by persons in the business of insurance and for preventing unfair or deceptive trade practices in the insurance marketplace.”

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