Mercury General released second quarter results showing a rise in profits of 1.8%.  The corporation’s combined ratio was reported to have climbed to 97% compared to 94% a year ago.

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Based on an analysis from the U.S. Bureau of Labor Statistics and Consumer Price Index data, the cost of auto insurance and auto body repair show a distinct rise during the 2nd Quarter of 2008. 

Source: U.S. Bureau of Labor Statistics. Aug 2, 2008

Late last week the Massachusetts House of Representatives unanimously passed an auto body repair bill now numbered HB 5056 (Substituted by the House, on motion of Mr. Mariano of Quincy, for a bill with the same title (House, No. 5053).  July 31, 2008.

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The Massachusetts state senate will now be reviewing the bill.  Some features of the bill are:

A. Insurer’s cannot guarantee repairs of any repair facility

B. The repair shop may, at it’s choosing, expedite the repair process by submitting a supplemental estimate electronically that includes digital photos along with other supporting documentation.  Any such request must be reviewed by an appraiser duly licensed under this section and must be approved or denied within 48 hours of receipt.  If the appraiser approves a supplemental request submitted in this manner, the insurer shall not be required to assign an appraiser to personally inspect the damage as required by 212 CMR 2.00.

C. Anti Steering language meaning the insurer cannot require the vehicle owner to use a specific repair facility.

D. The appraiser, representing the insurer, shall be required to negotiate in good faith, using the manual the supplement was prepared with.  The repair shop may also require a completed supplementary appraisal at the time the vehicle is viewed.  If so requested the repair shop must make available desk space, phone, calculator and manual used to prepare the supplement. 

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Here’s a link to the new bill HB 5056.