211 CMR 123.06; Issued 4/15/1994

# BULLETIN 94-03 TO: All Companies Writing Personal Automobile Insurance in Massachusetts FROM: Linda L. Ruthardt, Commissioner of Insurance SUBJECT: 211 CMR 123.06 DATE: April 15, 1994 L Ruthardt The following bulletin (94-03) contains guidance for insurers as they produce written information necessary to comply with the requirements of the above referenced regulation, especially as it relates to the provision of a list of referral and registered auto body shops. It also contains suggested language to accompany such list(s) which should assist the insured in deciding which of several possible actions the insured may take. 1. The "list" shall contain both referral and registered shops. As long as the list provided initially when responding to the claim contains both the referral and registered shops located in the county in which the vehicle is garaged and a notice that similar lists for other counties in Massachusetts are available upon request, the division will find that the requirement of 123.06 (2) (a) to provide "a single list" are being met. 2. The "insurers list" as referred to in the regulation is intended to mean the list of the referral shops indicated on the list required to be provided by the preceding point (1) of this bulletin. 3. Attachment A contains suggested language to accompany the list being mailed to the insured who has made claim which seeks to explain the insured's options as regards having or not having repairs made and the difference between using a referral shop versus a registered shop. 4. Attachment B contains sample language and format for a list of referral and registered shops.. Carriers who wish to use alternative language should assure that it communicates the same information and is written so as to understandable by an insured having an 8th grade reading level. Attachments - 2 ATTACHMENT A # AUTO DAMAGED ? HERE ARE YOUR OPTIONS ! eferral shop versus a registered shop. 4. Attachment B contains sample language and format for a list of referral and registered shops.. Carriers who wish to use alternative language should assure that it communicates the same information and is written so as to understandable by an insured having an 8th grade reading level. Attachments - 2 ATTACHMENT A # AUTO DAMAGED ? HERE ARE YOUR OPTIONS ! Enclosed is our appraisal for the cost of repairing your auto and a list of every registered auto body repair shop in your county. We have either enclosed our payment check or we will send it within 5 business days. If you intend to repair your damaged auto, you may select one of the following options: 1. You may choose a referral shop from the enclosed list. If you do, we will guarantee the materials and workmanship of the repair and the cost to you will usually not exceed our payment plus the amount of your deductible. You are responsible for any costs resulting from the use of parts that are of better quality than the parts that were on your auto at the time of the accident. (Referred to as a betterment or depreciation on the appraisal.) OR 2. You may choose any other registered auto repair shop from the enclosed list. We do not guarantee the quality of repairs at other shops, but a registered shop has posted a bond for the protection of its judgment creditors and may provide you with its own warranty. If the shop charges you more than our payment plus the amount of your deductible for the repairs, we will negotiate with that registered repair shop, but we cannot promise that we will pay the difference. You are responsible for any costs resulting from the use of parts that are of better quality than the parts that were on your auto at the time of the accident. (Referred to as a betterment or depreciation on the appraisal.) OR n our payment plus the amount of your deductible for the repairs, we will negotiate with that registered repair shop, but we cannot promise that we will pay the difference. You are responsible for any costs resulting from the use of parts that are of better quality than the parts that were on your auto at the time of the accident. (Referred to as a betterment or depreciation on the appraisal.) OR 3. You may choose not to participate in our Direct Payment/Referral Plan by returning the check to us and then have your auto repaired in accordance with the Completed Work Claim Form procedure. Please see your auto policy for details. If you do not intend to repair your damaged auto: - You may choose to cash our check and not repair your auto. In this case, we will reduce the actual cash value of your auto by the amount of our check plus the amount of your deductible. If you later give us proof of proper repair, the actual cash value will be increased. We have a right to inspect all repairs. If you or your chosen repair shop dispute the accuracy of the appraisal or our payment to you, the following applies to you, referral shops and other registered repair shops: - You or the repair shop must notify us by telephone or in writing if the cost of repair is expected to exceed our payment plus the amount of your deductible. The notice must be received by us prior to the completion of repairs; otherwise, the additional cost may not be paid. We will evaluate the request and either authorize or deny any supplemental payment. You must allow us to inspect your auto. - You or the repair shop must notify us by telephone or in writing if the cost of repair is expected to exceed our payment plus the amount of your deductible. The notice must be received by us prior to the completion of repairs; otherwise, the additional cost may not be paid. We will evaluate the request and either authorize or deny any supplemental payment. You must allow us to inspect your auto. Sometimes there may be a disagreement as to the amount of money we owe for losses or damage to your auto. If so, Massachusetts General Laws, Section 191A of Chapter 175, provides for a method of settling the disagreement. Either you or we can, within 60 days after you file your proof of loss, demand in writing that appraisers be selected. The appraisers then follow a procedure set by law to establish the amount of damage. Their decision will be binding on you and us. You and we must share the cost of the appraisal. ATTACHMENT B : Page 1 of 2 pages Name of Insurance Company  This list contains the name of every registered auto body repair shop in your county. Massachusetts law requires that all repair shops be registered. An insurance company cannot pay for any repair work done by an illegal unregistered shop. We have underlined "Referral Shops" on the list. A Referral Shop has an agreement with us to perform the repair work listed on our appraisal for the amount we pay you plus that part of the damage for which you are responsible (your deductible). We will guarantee the quality of repairs done by a Referral Shop. You are not required to use a Referral Shop. You may go to any repair shop on this list. We will negotiate with that registered repair shop, but we cannot promise that we will pay the difference between our check plus your deductible and the amount the shop charges to repair your auto. We do not guarantee the quality of repairs at other shops, but a registered shop has posted a bond for the protection of its judgment creditors and may provide you with its own warranty. p on this list. We will negotiate with that registered repair shop, but we cannot promise that we will pay the difference between our check plus your deductible and the amount the shop charges to repair your auto. We do not guarantee the quality of repairs at other shops, but a registered shop has posted a bond for the protection of its judgment creditors and may provide you with its own warranty. We will give you the list of registered repair shops in other counties at your request. List as of __________, 1994 ATTACHMENT B : Page 2 of 2 pages # SUFFOLK COUNTY | ALLSTON | 100 WINDOM STREET | CHELSEA | 481 EASTERN AVENUE | | --- | --- | --- | --- | | ADVENT GLASS CO., INC. | 100 WINDOM STREET | EASTERN AVENUE AUTO BODY | 950 BROADWAY | | ALFA AUTO BODY | 201 CAMBRIDGE STREET | GIANT GLASS CO., INC. | 923 BROADWAY | | BOSTON MAEDA | 160 GARDNER STREET | J & J SPECIALTY GLASS, INC. | 216 CARTER STREET | | * BOSTON VILLAGE AUTO BODY & REPAIRS | 22 BRIGHTON AVENUE | J.N. PHILLIPS CO., INC. | | | COLUMBIA AUTO PAINTING CO., INC. | 420 CAMBRIDGE STREET | DORCHESTER | 1245 DORCHESTER AVE | | DAVE'S AUTO BODY SERVICE, INC. | 10 GLENVILLE TERRACE | A.R. SHURIS & SONS, INC. | 35 TENNAN STREET | | GLENVILLE AUTO BODY AND REPAIRS, INC. | 28 EVERETT STREET | ACE AUTO BODY SERVICE | 907 ADAMS STREET | | J. D. AUTO BODY | 168 WESTERN AVENUE | ADAMS GLASS COMPANY | 1748 DORCHESTER AVE | | LIBON MOTORS, INC. | 30 PENNIMAN ROAD | AMERICAN AUTO GLASS, INC. | 1676 DORCHESTER AVE | | MECCA MOTORS | 10 REDFORD STREET | ATLANTIC AUTO SALES & SERVICE, INC. | 1676 DORCHESTER AVE | | MICHAEL J. HYNES AUTO REPAIR | 410 CAMBRIDGE STREET | BOSTON GLASS & BOARDING SERVICE, INC. | 1068 DORCHESTER AVE | | MOTORSPORT GARAGE, LTD. | 95 EVERETT STREET | BOSTON GLASS & BOARDING SERVICE, INC. | 551 WASHINGTON STREET | | NINO'S AUTO BODY, INC. | 383 CAMBRIDGE STREET | CENTRE MOTOR SERVICE CO., INC. | 256 HANCOCK STREET | | SO-LO GLASS COMPANY | 100 WINDOM STREET | CHEVY AUTO BODY, INC CHAEL J. HYNES AUTO REPAIR | 410 CAMBRIDGE STREET | BOSTON GLASS & BOARDING SERVICE, INC. | 1068 DORCHESTER AVE | | MOTORSPORT GARAGE, LTD. | 95 EVERETT STREET | BOSTON GLASS & BOARDING SERVICE, INC. | 551 WASHINGTON STREET | | NINO'S AUTO BODY, INC. | 383 CAMBRIDGE STREET | CENTRE MOTOR SERVICE CO., INC. | 256 HANCOCK STREET | | SO-LO GLASS COMPANY | 100 WINDOM STREET | CHEVY AUTO BODY, INC. | 80 CHRISTOPHER STREET | | * SPORT AUTO BODY, INC. | 200 LINCOLN STREET | CITYWIDE AUTO GLASS OF BOSTON | 1311 DORCHESTER AVE | | THE BODY WORKS, INC. | 32 BRIGHTON AVENUE | COLUMBIA PONTIAC TOYOTA COMPANY | 150 FREEPORT STREET | | THE VILLAGE GLASSMITH | | COSMOS AUTO SALES, INC. | 187 NEW ENGLAND AVE | | TOYOTA OF BOSTON, INC. | | * CROSSTOWN AUTO BODY, INC. | 645 DUDLEY STREET | | BOSTON | 14 MINER STREET | DORCHESTER UNIVERSAL AUTO BODY | 37 FREEPORT STREET | | AIR-TIGHT AUTO GLASS | 902 DORCHESTER AVENUE | EAST COAST FENELON'S AUTO BODY | 1676 DORCHESTER AVE | | ALLIANCE AUTO GLASS SERVICE, INC. | 601 ALBANY STREET | FITZPATRICK BROTHERS CORPORATION | 42 SHARP ST. | | AUTO GLASS, INC. | 750 COMMONWEALTH AVE | GLASS MEDIC CO. | 619 COLUMBIA ROAD | | BACK BAY JEEP-EAGLE / BACK BAY MOTORS | 839 ALBANY STREET | HICKS AUTO BODY, INC. | 10 TALBOT AVENUE | | * BOSTON BODY WORKS, INC. | 15 FISH PIER ROAD | J.N. PHILLIPS CO., INC. | 614 GALLIVAN BLVD | | BOSTON WYNSHIELD CORP. | 16 MINER STREET | MASS MOTORS, INC. | 209 BOSTON STREET | | BOYLSTON AUTO BODY, INC. | 1176 MASS AVE | METRO AUTO GLASS, INC. | 310 NEPONSET AVENUE | | CONTINENTAL AUTO BODY | 30 TERRACE STREET | NATIONWIDE PLATE & AUTO GLASS SERVICE CO | 54 ST. MARKS ROAD | | CROSSING AUTO BODY CO., INC. | 14 MINER STREET | NEPONSET LINCOLN MERCURY, INC. | 40 HALLET STREET | | GENEVA AUTO BODY, INC. | 589 ALBANY STREET | NORFOLK AUTO BODY & REPAIR | 360 NORFOLK STREET | | M & L AUTO BODY, INC. | 450 ALBANY STREET | PAL'S AUTO BODY & REPAIR, INC VENUE | | CONTINENTAL AUTO BODY | 30 TERRACE STREET | NATIONWIDE PLATE & AUTO GLASS SERVICE CO | 54 ST. MARKS ROAD | | CROSSING AUTO BODY CO., INC. | 14 MINER STREET | NEPONSET LINCOLN MERCURY, INC. | 40 HALLET STREET | | GENEVA AUTO BODY, INC. | 589 ALBANY STREET | NORFOLK AUTO BODY & REPAIR | 360 NORFOLK STREET | | M & L AUTO BODY, INC. | 450 ALBANY STREET | PAL'S AUTO BODY & REPAIR, INC. | 379 BOWDOIN STREET | | MAACO AUTO PAINTING & BODYWORKS | 163 OLD COLONY AVENUE | PETER'S AUTO BODY, INC. | 15 FREEPORT WAY | | MASS GLASS CORP. | 65 GERARD STREET | RAINBOW AUTO BODY, INC. | 1860 DORCHESTER AVE | | MIDDLESEX TRUCK & AUTO BODY, INC. | 25 HALLET STREET | REVITALIZED AUTO RECONDITIONING | 209 BOSTON STREET | | NEPONSET CIRCLE AUTO BODY, INC. | 880 R COMMONWEALTH | * SUSI AUTO BODY, INC. | 53 FREEPORT STREET | | WORLD AUTO BODY, INC. | | TOM'S AUTO BODY & GLASS, INC. | 286 ADAMS STREET | | BRIGHTON | 1686 R COMMONWEALTH | WESTMINSTER DODGE, INC. | 710-720 MORRISEY BLVD | | A. NICOLAI, INC. | 449 WESTERN AVENUE | EAST BOSTON | 10-16 EVERETT STREET | | A.T.S. OF AMERICA, INC. | 569A WASHINGTON ST | A & M AUTO BODY | 404 BREMEN STREET | | EMERALD AUTO GLASS | 19 ACADEMY HILL ROAD | ALONGI & SON AUTO BODY, INC. | 233 CONDOR STREET | | HARRY'S FOREIGN & AMERICAN AUTO SERVICE | 586 WASHINGTON STREET | * ANGELO'S AUTO BODY | 10-16 EVERETT STREET | | J & K AUTO BODY, INC. | 123 NORTH BEACON ST | BEN'S AUTO BODY & REPAIRING | 215 LONDON STREET | | J.N. PHILLIPS CO., INC. | 305 WESTERN AVENUE | BOSTON ADVANCED AUTOMOTIVE, INC. | 200 MCCLELLAN HIGHWAY | | STADIUM AUTO BODY, INC. | 500 WESTERN AVENUE | DESI'S AUTO BODY, INC. | 31 ORLEANS STREET | | STANLEY'S AUTO BODY | | FUTURE AUTOMOTIVE INC. | | PRISCILLA H. DOUGLAS SECRETARY LINDA RUTHARDT COMMISSIONER # THE COMMONWEALTH OF MASSACHUSETTS EXECUTIVE OFFICE OF CONSUMER AFFAIRS DIVISION OF INSURANCE 470 ATLANTIC AVENUE BOSTON, MA 02210-2223 UTOMOTIVE, INC. | 200 MCCLELLAN HIGHWAY | | STADIUM AUTO BODY, INC. | 500 WESTERN AVENUE | DESI'S AUTO BODY, INC. | 31 ORLEANS STREET | | STANLEY'S AUTO BODY | | FUTURE AUTOMOTIVE INC. | | PRISCILLA H. DOUGLAS SECRETARY LINDA RUTHARDT COMMISSIONER # THE COMMONWEALTH OF MASSACHUSETTS EXECUTIVE OFFICE OF CONSUMER AFFAIRS DIVISION OF INSURANCE 470 ATLANTIC AVENUE BOSTON, MA 02210-2223 (617) 521-7794 TTY/TDD (617) 521-7490 April 15, 1994 Michael B. Meyer, Esq. Meyer, Connolly, Sloman & MacDonald 12 Post Office Square Boston, MA 02109 Re: Implementation of 211 CMR 123.00. Dear Mr. Meyer: Upon further review of the file in the matter of implementing the duly promulgated revisions to 211 CMR 123.00, Direct Payment of Motor Vehicle Collision and Comprehensive Coverage Claims and Referral Repair Shop Programs, it is my determination that the current stay may be and is hereby lifted effective Friday, April 15, 1994, to be implemented for all claims received on or after May 1, 1994. The outstanding issues that have been the subject of repeated negotiations between the Division of Insurance, the Automobile Insurers Bureau (AIB) and the Massachusetts Auto Body Association (MABA) appear to involve interpretation of the regulations's provisions, with particular reference to what list an insurer is required to provide to insured claimants. It is my intent to clarify the regulation in this area by an interpretive bulletin, a copy of which is appended hereto. In essence, the interpretive bulletin will indicate that providing the insured with a list of referral and registered shops in the county in which the vehicle is garaged and a notice that such a list for any additional counties will be provided upon request will meet the requirements of the regulation. Additionally, insurers may indicate referral shops by asterisk, underlining, boldface type and/or any other similar way etive bulletin will indicate that providing the insured with a list of referral and registered shops in the county in which the vehicle is garaged and a notice that such a list for any additional counties will be provided upon request will meet the requirements of the regulation. Additionally, insurers may indicate referral shops by asterisk, underlining, boldface type and/or any other similar way. Samples of recommended acceptable consumer information which reflects the negotiations of the AIB and MABA will be included for guidance. I would like to thank you and the Automobile Insurers Bureau for your anticipated cooperation in implementing the regulation pursuant to the attached interpretive bulletin. Sincerely, Linda Ruthardt Linda Ruthardt Commissioner of Insurance cc: Hon. Priscilla Douglas George B. Dean, Esq. James Castleman, Esq.