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.
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, 2025View 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 |
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