Kentucky Assignment of Benefits Bill Passes Senate

February 22, 2024

by Seth Maiman
AGSC Director of Public Affairs

A Kentucky bill that would dramatically change the auto glass industry in that state, similar to legislation passed in Florida in 2023, passed the State Senate on February 16.

The bill, introduced by Senator Brandon Storm, would end Assignment of Benefits in auto glass repair and replacement jobs and prohibit companies from offering rebates, gift cards or “any thing of value” for auto glass insurance claims. Kentucky would remain as a “zero deductible” state under the bill.

The bill would require glass shops to obtain an insurance claim number or a waiver of insurance before contracting for work. The shop would also have to inform the customer whether the vehicle has an ADAS system and if the system will be recalibrated to be fully operable. Glass shops would also have to provide invoices with an estimate of fees, a statement regarding the shop’s standard fees for glass services and that it is prohibited under state law from charging more than is “reasonable and customarily charged” in Kentucky.

The bill explicitly states customers can use the glass services shop of their choice and explicitly allows insurers to maintain a network of glass services shops.

The bill prohibits glass shops from committing a variety of fraudulent practices or making false statements to the customer or the insurance company.

The Kentucky Senate Banking and Insurance Committee passed a substitute version of the legislation originally introduced after a brief hearing on February 13. The substitute version included several changes clarifying language in the bill and added the most recent version of the SAE International’s SAE J3016 Levels of Driving Automation into the definition of “Advanced Driver Assistance System”.

The Kentucky Legislature operates on a 90-day legislative session that will conclude in early April. The Senate passed bill now moves for consideration in the Kentucky House. For the full text of the KY S 29 Substitute bill as passed by the Senate, CLICK HERE.

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