An Act To Protect Consumers' Freedom of Choice in Auto Collision Repairs
Maine Legislature, Session 128, LD 1540
Committee: Insurance and Financial Services
Sponsors: HAMANN, COLLINGS, LAWRENCE
Amends: 24-A MRSA §2164-C

Legislative Document
No. 1540
H.P. 1061
House of Representatives, April 27, 2017
An Act To Protect Consumers' Freedom of Choice in Auto Collision 
Repairs
Reference to the Committee on Insurance and Financial Services suggested and ordered 
printed.
ROBERT B. HUNT
Clerk
Presented by Representative HAMANN of South Portland.
Cosponsored by Representatives: COLLINGS of Portland, LAWRENCE of South Berwick.
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  24-A MRSA §2164-C, sub-§2, as enacted by PL 2005, c. 101, §1, is 
amended to read: 
2.  Appraisals or repairs to motor vehicles for collision damage. A domestic or 
foreign insurer or its agent or employee may not require, directly or indirectly, that 
appraisals or repairs to motor vehicles with collision damage be made or not be made in a 
specified place of business. 
A domestic or foreign insurer or its agent or employee may not contract with any person 
to act as its agent for purposes of managing, handling or arranging repair or replacement 
of motor vehicles for collision damage when that person is compensated by payment of a 
portion of the difference between the list price of the product or services provided and the 
amount paid to the person providing repair and replacement service. 
A domestic or foreign insurer or its agent or employee may not recommend the use of a 
particular motor vehicle repair service or network of repair services without informing the 
claimant that the claimant is under no obligation to use the recommended repair service 
or network of repair services. 
A domestic or foreign insurer or its agent or employee may not engage in any act or 
practice of intimidation, coercion, threat, incentive or inducement for or against an 
insured or claimant to use a specified place of business for repair and replacement 
services. A consumer benefit included within a preferred vendor program is not an 
incentive or inducement under this subsection but may not be presented as an incentive or 
inducement to use a specified place of business for repair and replacement services. 
Sec. 2.  24-A MRSA §2164-C, sub-§§3 to 5 are enacted to read: 
3.  Claim report scripts; required advisory.  Upon application for a certificate of 
authority under chapter 5, subchapter 1, changing an approved script under this 
subsection or within 60 days after the effective date of this subsection for a domestic or 
foreign insurer that possesses a certificate of authority on the effective date of this 
subsection, the domestic or foreign insurer shall file with the superintendent and receive 
the superintendent's approval for any prearranged script or talking points the domestic or 
foreign insurer requires to be told or read to an insured or claimant at the time a claim for 
motor vehicle collision damage is reported. Any prearranged script or talking points 
under this subsection must include the following advisory to the insured or claimant: 
"You have the legal right to choose a motor vehicle collision repair shop to fix your 
vehicle. Your policy will cover the reasonable costs of repairing your vehicle to its pre-
accident condition no matter where you have repairs made. Have you selected a motor 
vehicle collision repair shop, or would you like a referral?" 
The prearranged script or talking points must also include for an insured or claimant who 
requests a referral to a motor vehicle repair service: 
"Would you like the list of motor vehicle repair services within 20 miles of your 
residence?" 
If an insured or claimant has indicated that the insured or claimant has selected a motor 
vehicle repair service, the insurer must cease all efforts to influence the insured's or 
claimant's choice of repair service. If the insured or claimant requests a referral to a motor 
vehicle repair service, the insurer may only provide a list of all appropriate motor vehicle 
repair services within 20 miles of the residence of the insured or claimant. 
4.  Superintendent review; powers.  The superintendent shall review any 
prearranged script or talking points of a domestic or foreign insurer filed with the 
superintendent under subsection 3 and reject or modify any item in the script or talking 
points that violates a provision of this Title.  A domestic or foreign insurer may not use or 
require to be used any script or talking points rejected by the superintendent under this 
subsection.  Upon a complaint or the superintendent's own initiative, the superintendent 
may request and a domestic or foreign insurer shall provide for review by the 
superintendent any audio, video or written recording of the domestic or foreign insurer 
receiving a claim from an insured or claimant.  If the review was conducted pursuant to a 
complaint, the superintendent shall provide the complainant with the decision by the 
superintendent and a copy of the audio, video or written recording that was provided to 
the superintendent by the domestic or foreign insurer. 
5.  Unfair trade practice; civil violation.  A domestic or foreign insurer who 
violates this section commits a violation of the Maine Unfair Trade Practices Act and a 
civil violation for which, along with any other remedy allowed by law, the following 
fines must be adjudged: 
A.  For a first offense, $1,000; 
B.  For a 2nd offense within a 12-month period, $2,500; 
C.  For a 3rd offense within a 12-month period, $5,000; and 
D.  For a 4th or subsequent offense within a 12-month period, $5,000 and the 
superintendent may suspend or revoke the insurer's certificate of authority. 
In addition to the fines specified in paragraphs B to D, for a 2nd and subsequent violation 
of this section, the insurer shall provide to the superintendent proof that the insurer has 
taken action to prevent further violations of this section, including training of employees 
and other corrective measures. 
Upon complaint or the Attorney General's own initiative, the Attorney General may 
enforce this section including seeking any administrative or civil remedy allowed by law.  
The Attorney General to enforce this section is not required to show that a violation of 
this section occurs with such frequency as to indicate a general business practice. 
SUMMARY 
This bill amends the provisions of law regarding insurers' initial communications 
with an insured or claimant filing a claim for collision damage to an automobile in the 
following ways. 
1.  It clarifies that an insurer may not intimidate, coerce, threaten or provide incentive 
or inducement to the insured or claimant to use any particular specified place of business 
to repair the automobile. 
2.  It requires an insurer to submit to and have approved by the Superintendent of 
Insurance the script or talking points the insurer requires to be read or told to an insured 
or claimant upon receiving the claim and to include in the script or talking points an 
advisory that the insured or claimant has the legal right to choose the motor vehicle repair 
service to fix the vehicle. 
3.  It makes a violation of the provisions of this bill and the other provisions 
regarding free competition in insurance for motor vehicle repairs an unfair trade practice 
and a civil violation with graduated fines from $1,000 for a first offense to $5,000, a 
requirement for the 2nd and subsequent offense that the insurer provide proof of 
corrective measures and, for a 4th or subsequent offense within a 12-month period, 
possible suspension or revocation of the insurer's certificate of authority. 
4.  It allows the Attorney General to enforce the provisions of this bill and the other 
provisions regarding free competition in insurance for motor vehicle repairs.