"Steering" Motor Vehicle - Comprehensive and Collision Claimants to Particular Repair Facilities.

May 1, 1990 SUBJECT: INSURANCE Circular Letter No. 5 (1990) WITHDRAWN TO: ALL INSURERS LICENSED TO WRITE AUTOMOBILE PHYSICAL DAMAGE INSURANCE IN NEW YORK RE: "STEERING" MOTOR VEHICLE COMPREHENSIVE AND COLLISION CLAIMANTS TO PARTICULAR REPAIR FACILITIES This Circular is a reminder to all insurers writing motor vehicle. comprehensive and collision insurance that Section 2610 of the Insurance Law prohibits company claims adjusters, agents or any other company personnel from recommending or suggesting automobile repairs be made in a particular place, shop or concern, unless the insured expressly requests a referral. However, the prohibition against "steering" a claimant to a particular repair facility dues not apply to a claim solely involving window glass. Insurance Department Regulation No. 64 (11 NYCRR 216) sets forth insurers obligations in complying with the Law. Forms NYD APD 1 (NOTICE OF RIGHTS UNDER YOUR PHYSICAL DAMAGE INSURANCE) and NYS APD 1-a (SECTION 2610 OF THE INSURANCE LAW - DISCLOSURE STATEMENT) are prescribed for use in implementing the requirements of the statute. Violations of the foregoing requirements would be considered unfair claims settlement practices and subject to disciplinary action pursuant to Section 2601 of the Insurance Law. Any questions" regarding this Circular Letter may be directed to the attention of: Alvin Kaufman, Senior Examiner Property & Casualty Insurance Bureau New York State Insurance Department 160 West Broadway New York, New York 10013 212-602-0352 Very truly yours, [SIGNATURE] WENDY E. COOPER ACTING SUPERINTENDENT OF INSURANCE