SB 1002 Motor Vehicle Glass

LAW ALERT: SB 1002 Motor Vehicle Glass

June 1, 2023

By: Daniel J. Santaniello, Esq. and Brenisha A. Bannister, Esq.

Governor Ron DeSantis signed SB 1002 into law on May 25, 2023, which regulates services performed by motor vehicle repair shops as it relates to windshield glass replacement/repair – namely the calibration and recalibration of advanced driver assistance systems (ADAS). Glass shops and their employees will now be prohibited from enticing or inducing customers with offers (monetarily or otherwise) in exchange for making an insurance claim for glass replacement or repair. This exchange is typically presented in the form of an Assignment of Benefits (AOB) wherein the customer (insured) assigns their rights under an insurance policy to the glass shop for services performed on their motor vehicle glass. More specifically, the bill will prevent a policy holder from entering into an AOB agreement for motor vehicle glass replacement or repair, including calibration and recalibration for an insurance policy issued on or after July 1, 2023. This bill will prohibit the use of AOBs which, in turn, will remove the standing glass shops need to file suit against insurers for services performed, thereby rendering the AOB void and unenforceable.

Implications. The volume of windshield litigation involving an AOB in Florida has gone from 435 lawsuits in 2011 to 33,196 in 2022, according to the Florida Department of Financial Services.¹ SB 1002 seeks to reduce the amount of frivolous windshield glass lawsuits filed in Florida. By expunging AOBs from the equation, this bill strips motor vehicle repair shops’ of their access to the courts as it relates to glass claims. While we have recently seen a surge of windshield litigation in the past years, we expect to see a significant decline due to this bill as glass shops’ standing has been majorly impacted. The law is effective immediately for policies issued or renewed on or after July 1, 2023; therefore, while we can expect to see an upcoming decline in windshield litigation, it may be after a sudden surge in litigation as glass shops and their attorneys seek to bombard the courthouse in an attempt to file suits before SB 1002 becomes effective into law.

Requirements for Motor Vehicle Repair Shops. Motor vehicle repair shops will now be required to provide notice (written or electronic) to the insured/customer informing them if calibration or recalibration of the ADAS is required to make the necessary repairs. The service must be provided in a manner that meets or exceeds manufacturer’s specifications.

Personal Lines Automobile Insurance Policy Requirements. The following section is only for windshield glass claims under the comprehensive or combined additional coverage provisions of a personal lines automobile insurance policy. Regarding requirements of insurers under a personal lines automobile insurance policy, insurance companies and their agents are prohibited from requiring an insured to use a particular company or location for repair services including replacement and calibration services. An insurer may provide an explanation of motor vehicle comprehensive coverage benefits and any applicable limit of liability to an insured. Finally, an insurer must provide an actuarially sound discount to the insured if they offer a policy that contains a managed repair arrangement for the provision of windshield glass replacement, repair, or calibration services.

It is important to note that the foregoing requirements do not create a private cause of action. The bill will become effective immediately upon becoming law.

¹Data provided by the Florida Department of Financial Services to the Senate Committee on Banking and Insurance on January 19, 2023 (on file with the Senate Banking and Insurance Committee).

Questions? Luks and Santaniello, LLC.'s Tort Reform Committee will continue to monitor and provide updates regarding developments in the applications of these new laws. For questions or further assistance with your Florida matters, please reach out to Managing Partner Daniel Santaniello and visit our website for more information, resources and pertinent legal updates.

For further information, please contact:

Daniel J. Santaniello, Esq.

T: (561) 226-2525

E: DJS@insurancedefense.net

Brenisha Bannister, Esq.

T: (954) 847-2957

E: BBannister@insurancedefense.net

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Contact:

Luks, Santaniello, Petrillo, Cohen & Peterfriend

Daniel Santaniello, Managing Partner

T: (561) 226-2525

E: DJS@insurancedefense.net

Luks, Santaniello, Petrillo, Cohen & Peterfriend

Maria Donnelly, Client Relations

T: 954.847.2936

E: MDonnelly@insurancedefense.net

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