Georgia's HB 1117: Regulating Auto Insurance and Repair Facilities

A newly proposed legislative measure in Georgia aims to regulate the relationship between automotive insurance practices and repair facilities by mandating adherence to original equipment manufacturer (OEM) guidelines. On February 2, state legislators Lehman Franklin, Tyler Paul Smith, Ron Stephens, Mike Cheokas, Matthew Gambill, and Matt Reeves introduced HB 1117 to the Georgia House of Representatives. This bill seeks to amend existing insurance and business regulations, significantly impacting the automotive repair sector and auto glass services.

The bill grants policyholders the autonomy to select their preferred repair facilities, even under liability-only motor vehicle insurance policies. It prohibits insurers from imposing repair facility choices on claimants, especially where the insurer has a financial interest. Although insurers may suggest facilities, they must make it clear to claimants that they are not required to use them. Disclosing any financial interests in recommended facilities is also mandated.

The bill further requires insurance policies to support repairs in accordance with OEM procedures, impacting dealers, garages, body shops, and glass repair services. Insurers must authorize necessary labor, parts, and calibrations when a repair facility's written request cites an OEM position statement. Insurers are only permitted to deny reimbursement claims if they provide a detailed explanation within three business days, with a notice regarding state law violations on unfair claims settlement practices. They must also assign an appraiser to assess any reported "supplemental damage" within one business day.