33-18-224. Designation of specific automobile repair shops prohibited -- certain requirements -- allowances. (1) An insurance company, including its employees and adjusters, that issues or renews a policy of insurance in this state covering, in whole or in part, a motor vehicle may not:
     (a) require or encourage a person insured or a claimant under the policy to use a particular automobile repair business or location;
     (b) engage in any act or practice that intimidates, coerces, or threatens an insured person or a claimant or provides an incentive or inducement for an insured person or a claimant to use a particular automobile repair business or location;
     (c) except as provided in subsection (2):
     (i) suggest the use of a particular automobile repair business or location;
     (ii) mention or provide the name of a particular automobile repair business or location;
     (iii) direct an insured or claimant to an automobile repair business or location or entity in Montana that engages in or has a financial interest in the processing of a claim or bill unless the business or location has been selected by the insured or claimant; or
     (iv) share information obtained through the processing of an automobile repair bill with an entity that is involved directly or indirectly in any aspect of the automobile repair business; or
     (d) suggest or direct its appointed producers to suggest, mention, provide the name of, or encourage the use of a particular automobile repair business or location to an insured person or a claimant.
     (2) (a) Subsections (1)(a), (1)(b), and (1)(c)(iii) apply to all insurance producers; and
     (b) subsections (1)(c)(i) and (1)(c)(ii) apply only to insurance producers that:
     (i) write automobile insurance for primarily one insurer; or
     (ii) are contractually obligated to use one automobile insurer before using other insurers.
     (3) An insurer may:
     (a) provide an insured person or a claimant with a list of all established automobile repair businesses or locations reasonably close to the insured person or claimant that offer a warranty for the automobile repair services provided by the businesses or locations; or
     (b) provide an insured person or a claimant with a list of particular automobile repair businesses or locations that are reasonably close to the insured person or claimant that meet reasonable standards of quality, service, and safety .
     (4) If an insurer elects to provide an insured person or a claimant with the list described in subsection (3)(b), the insurer shall:
     (a) upon the request of any automobile repair business or location, make available the reasonable standards of quality, service, and safety that are to be met by automobile repair businesses or locations in order to be placed on the list. The standards may not exclude a business or location from being on the list solely on the basis of the size or location of the automobile repair business, the number of persons employed in the business, or pricing other than what is fair or reasonable in the market area of the automobile repair business or location.
     (b) include on the list any automobile repair business or location that meets the standards and indicates in writing to the insurer that the business or location desires to be placed on the list.
     (5) In the event of any dispute, the business or location may submit a complaint to the commissioner for a determination in accordance with the provisions of Title 33, chapter 1, part 7.
     (6) In distributing the list provided for in subsection (3) to an insured or a claimant or in any discussion of the list with an insured or a claimant, an insurer may not express a preference or mention an advantage or inducement for the insured or the claimant to use a particular automobile repair facility or location on the list.
     (7) The insured may use a business or location at the insured's or claimant's sole discretion. The insurance company shall pay for the reasonable and necessary cost of the automobile repair services for covered damages, less any deductible under the terms of the policy. This section does not require an insurer to pay more for automobile repair services than the prevailing market price, as defined in 33-18-222. An insurer shall inform the insured person or claimant of the insured person's or claimant's rights under this subsection.
     (8) If the insured person or claimant uses an automobile repair business or location not on a list provided under subsection (3)(a) or (3)(b), the insurance company may not be held liable for any repair work performed by the automobile repair business or location that the insured person chooses to use.
     (9) It is unlawful for an automobile repair business or location to charge or agree to charge an insured customer more than an uninsured customer for any automobile repair service.
     (10) An insurance company that contracts with an independent adjuster may not be held liable for the independent adjuster's failure to comply with the terms of this section unless the independent adjuster is clearly acting at the direction of the insurance company.
     (11) For purposes of this section, "automobile repair business or location" does not include a business or location that exclusively provides automobile glass replacement, glass repair services, or glass products.

     History: En. Sec. 1, Ch. 292, L. 1997; amd. Sec. 5, Ch. 526, L. 1999.