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No stiffing the auto shop (new law)

Published (5/16/2008)
By Nick Busse
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A new law is designed to prevent insurance companies from denying payment to auto body shops for repairs made under an insurance claim.

Signed May 8 by Gov. Tim Pawlenty, the law specifies that insurers cannot “unilaterally and arbitrarily disregard” the cost of auto repairs made under an insurance claim if the auto service provider used an estimating system recognized by the insurance industry.

Rep. A. Willie Dominguez (DFL-Mpls) and Sen. Mary Olson (DFL-Bemidji) sponsor the law it takes effect Aug. 1, 2008.


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