2007 House Bill 4778

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Introduced in the House

May 17, 2007

Introduced by Rep. Barbara Farrah (D-13)

To prohibit auto insurance companies from owning auto repair shops, and require the divestiture within two years of any they currently own. When a similar bill was introduced in 2003, Allstate was the only insurance company that currently owned repair shops in Michigan (Sterling Autobody Center).

Referred to the Committee on Commerce

Oct. 23, 2007

Reported without amendment

With the recommendation that the bill be referred to the Committee on Insurance.

Referred to the Committee on Insurance

Nov. 13, 2008

Reported without amendment

With the recommendation that the amendment be adopted and that the bill then pass.

Amendment offered

To also prohibit an insurer from developing a preferred list of repair shops, or in any way conveying to a customer a preference.

The amendment passed by voice vote

Passed in the House 61 to 40 (details)

To prohibit auto insurance companies from owning auto repair shops, and require the divestiture within two years of any they currently own. Also, to prohibit an insurer from developing a preferred list of repair shops, or in any way conveying to a customer a preference. When a similar bill was introduced in 2003, Allstate was the only insurance company that currently owned repair shops in Michigan (Sterling Autobody Center).

Received in the Senate

Dec. 2, 2008

Referred to the Committee on Economic Development and Regulatory Reform