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Business & Economy

SB602

To Prohibit Insurance Companies And Appraisers From Requiring An Insured To Use Certain Facilities To Repair Or Replace Damaged Motor Vehicle Safety Glass; And To Provide Penalties For Violations.

Failed

Last Action (May 5, 2025): Died in House Committee at Sine Die adjournment.

Sponsors

AI-Generated Summary

Senate Bill 602 prohibits insurance companies, adjusters, and appraisers from mandating that policyholders use specific repair facilities for motor vehicle safety glass repair or replacement. The bill mandates that insurance representatives inform consumers of their right to choose their preferred glass shop during initial contact. It restricts insurers from recommending company-owned or affiliated glass shops unless they also provide the name of at least one independent alternative in the same area. Furthermore, the bill prohibits insurers from suggesting that choosing an independent shop will lead to repair delays or voided warranties. Violations of these provisions are classified as unfair trade practices under the Arkansas Deceptive Trade Practices Act, subjecting violators to relevant penalties and legal remedies.

Potential Impact Analysis

Who Might Benefit?

The primary beneficiaries include independent auto glass repair shops and small business owners who will have a more level playing field to compete for customers without being bypassed by insurer-steered networks. Additionally, individual consumers benefit by gaining greater autonomy in selecting their preferred service provider, potentially leading to increased competition and consumer choice in the automotive repair market.

Who Might Suffer?

Insurance companies and third-party claims administrators are negatively impacted, as the bill restricts their ability to manage costs and quality through preferred provider networks and pre-negotiated repair programs. These entities may face increased operational costs, reduced leverage in steering claims to high-volume or integrated partners, and potential legal or financial penalties if they fail to adhere to the new disclosure and referral mandates.

Vote Records

Third Reading

April 8, 2025
Yea: 22 Nay: 5 NV: 8 Absent: 0 Passed
View individual votes (35)
Legislator Party Chamber Vote
Jane English Republican Senate Yea
Jonathan Dismang Republican Senate Yea
Greg Leding Democrat Senate Nay
Missy Irvin Republican Senate Yea
Bryan King Republican Senate Yea
Kim Hammer Republican Senate Yea
Stephanie Flowers Democrat Senate Nay
Frederick Love Democrat Senate NV
Terry Rice Republican Senate NV
Reginald Murdock Democrat Senate Yea
Gary Stubblefield Republican Senate Nay
Jim Dotson Republican Senate NV
John Payton Republican Senate Nay
Alan Clark Republican Senate Yea
Ronald Caldwell Republican Senate Yea
Bart Hester Republican Senate Yea
Jimmy Hickey Republican Senate Yea
Dan Sullivan Republican Senate NV
David Wallace Republican Senate Yea
Blake Johnson Republican Senate Yea
Justin Boyd Republican Senate Yea
Clarke Tucker Democrat Senate Nay
Scott Flippo Republican Senate NV
Clint Penzo Republican Senate NV
Mark Johnson Republican Senate Yea
Ricky Hill Republican Senate Yea
Jamie Scott Democrat Senate Yea
Breanne Davis Republican Senate Yea
Ben Gilmore Republican Senate Yea
Joshua Bryant Republican Senate NV
Matt McKee Republican Senate Yea
Jim Petty Republican Senate Yea
Steve Crowell Republican Senate Yea
Tyler Dees Republican Senate NV
Matt Stone Republican Senate Yea
Read Full Bill on arkleg.state.ar.us