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Anti-capping law gathering support in Virginia, California

LEGISLATION

A bill outlawing insurance company "capping" of paint and materials payments to collision shop owners has been introduced in California following passage of similar legislation in Virginia.

Virginia's measure has been signed into law by the commonwealth's governor and takes effect in July. California's Senate Bill 1371 received an 11-0 affirmative vote in the state senate's banking, finance and insurance committee. The next step is a hearing on the senate floor sometime prior to May 30. If successful there, it moves on to die lower chamber's Assembly Insurance Committee for further review. If approved, it would become kw in January 2009.

"The intent of the bill is to stop ...

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