HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: CS/CS/HB 541 Motor Vehicle Glass
SPONSOR(S): Commerce Committee, Insurance & Banking Subcommittee, Griffitts
TIED BILLS: IDEN./SIM. BILLS: CS/SB 1002
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Insurance & Banking Subcommittee 15 Y, 0 N, As CS Fortenberry Lloyd
2) Civil Justice Subcommittee 12 Y, 4 N Mawn Jones
3) Commerce Committee 16 Y, 2 N, As CS Fortenberry Hamon
SUMMARY ANALYSIS
The deductible provisions of a motor vehicle insurance policy providing comprehensive or combined additional
coverage do not apply to the repair or replacement of the damaged windshield of any motor vehicle covered under
such policy. Therefore, a consumer often qualifies for motor vehicle glass repair or replacement without paying a
deductible out-of-pocket. Further, some motor vehicle glass repair shops (repair shop) currently offer incentives,
including cash and gift cards, in exchange for a consumer filing an insurance claim for motor vehicle glass repair or
replacement. This, combined with the practice of repair shops accepting an assignment of the consumer’s post -loss
repair benefits for windshield repair or replacement under a motor vehicle insurance p olicy, may have contributed to
the steep rise in motor vehicle glass lawsuits over the last few years. The rise in such lawsuits may have, in turn,
contributed to the increase in motor vehicle insurance premiums faced by Florida consumers in recent years.
The bill:
Expands the definition of “motor vehicle repair” to include advanced driver assistance system (ADAS)
calibration or recalibration.
Defines ADAS to mean any motor vehicle electronic safety system that is associated with motor vehicle
glass and is designed to support the driver and motor vehicle in a manner intended to increase motor
vehicle safety and reduce losses associated with motor vehicle crashes.
Prohibits a repair shop or its employees from:
o Offering to a customer anything of value in exchange for making an insurance claim for motor
vehicle glass replacement or repair, including ADAS calibration or recalibration, and prohibits a non -
employee who is compensated for soliciting insurance claims from making such offers.
o Failing to provide electronic or written notice to the customer as to whether the calibration or
recalibration of ADAS is required as part of the replacement or repair of motor vehicle glass.
Authorizes an insurer to offer to an insured or an applicant for insurance, upon the issuance or renewal of a
policy providing comprehensive or combined additional coverage, a deductible of $250 for claims of damage
to the windshield of any motor vehicle covered under such policy, which the insured or applicant may
decline.
Prohibits a policyholder or any other person from entering into an assignment agreement for post -loss
benefits for motor vehicle glass replacement or repair under a motor vehicle insurance policy issued or
renewed on or after July 1, 2023; provides that any such agreeme nt is void; and, unenforceable, and defines
“assignment agreement” for the purposes of this provision.
Prohibits insurers, agents and adjusters, and anyone working for them, from influencing the selection of a
shop to complete a motor vehicle windshield repair, i.e., “steering” a claim, and establishes related
conditions.
The bill does not appear to have a fiscal impact on state or local governments. It may have a positive or negative
direct economic impact on the private sector.
The bill provides an effective date of July 1, 2023.
This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
STORAGE NAME: h0541d.COM
DATE: 4/12/2023
FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
General Background
Motor Vehicle Repair Shops
Motor vehicle repair shops in Florida are regulated by the Department of Agriculture and Consumer
Services (DACS) under the Florida Motor Vehicle Repair Act (Repair Act). 1 The Repair Act requires that
all motor vehicle repair shops, with minor exceptions, register with DACS. 2 A motor vehicle repair shop
may be fixed or mobile and includes a person or business that does motor vehicle glass work for
compensation.3
Under the Repair Act, it is unlawful for a motor vehicle repair shop or its employee to engage in certain
activities including misrepresenting that repairs have been made to a motor vehicle or fraudulently
altering any customer contract, estimate, invoice, or other document. 4 The Repair Act provides for
various remedies for unlawful acts by motor vehicle repair shops, including notices of noncompliance,
administrative fines, orders to cease and desist, probation of registrants, and suspension or revocation
of registrations.5
Motor Vehicle Insurance
When a consumer purchases the minimum motor vehicle insurance required by Florida law, including
personal injury protection coverage (PIP), that consumer does not have first-party insurance coverage
for the repair or replacement of motor vehicle glass. However, a consumer who purchases
comprehensive coverage, which pays for damage to a motor vehicle caused by an event besides a
collision, generally has coverage for damaged or broken motor vehicle glass. 6 Because lenders often
require borrowers who obtain motor vehicle loans to also purchase comprehensive motor vehicle
insurance coverage, a consumer who owes money on a motor vehicle often has motor vehicle glass
coverage.7
Incentives for Motor Vehicle Glass Insurance Claims
Some motor vehicle glass repair shops currently offer incentives, including cash and gift cards, in
exchange for a consumer filing an insurance claim for motor vehicle glass repair or replacement.8
Consumers have also complained to DACS that they never received the incentives promised by the
motor vehicle glass repair shops, even after their motor vehicle glass was replaced and the claims were
submitted to the motor vehicle insurance companies. 9
Auto Glass America, a motor vehicle glass repair shop that advertises up to $100 cash back and a
$100 gift card for submitting a “qualifying” motor vehicle glass insurance claim, filed over 15,300 motor
1 Ss. 559.901-559.9221, F.S.
2 S. 559.904, F.S.
3 S. 559.903(6) and (7), F.S.
4 S. 559.920, F.S.
5 S. 559.921, F.S.
6 See Florida Department of Financial Services, Automobile Insurance a Toolk it for Consumers,
https://www.myfloridacfo.com/docs-sf/consumer-services-libraries/consumerservices -doc uments/understanding-
coverage/consumer-guides/english---automobile-insurance-toolkit.pdf?sfvrsn= 6b999793_4 (last visited Mar. 11, 2023).
7 Id. See discussion on deductible below.
8 See, e.g., https://webuywindshields.com/ (last visited Mar. 11, 2023).
9 See, e.g., Consumer Complaint No.: 225337/Case No. 1509-37312, submitted to DACS on Sept. 18, 2015; available on
request from DACS.
STORAGE NAME: h0541d.COM PAGE: 2
DATE: 4/12/2023
vehicle glass related lawsuits against insurers in Florida between January 1, 2016, and February 7,
2019.10
Recognizing the dangers posed to consumers, many industries and professions currently prohibit
incentives in exchange for an act for which the inducer would earn additional income. For example:
Section 456.054, F.S., prohibits a healthcare provider from offering a kickback to anyone in
exchange for patient referrals;
Section 468.456(1)(f), F.S., prohibits an athlete agent from offering anything of value to a
student athlete to induce the athlete to enter into an agreement for representation;
Section 626.854(7)(a)2., F.S., prohibits a public adjuster from inducing an insured to submit an
insurance claim; and
Section 626.9541, F.S., prohibits an insurance agent from offering inducements in many
situations, including offering a rebate to induce a customer to enter into an insurance contract,
or offering a reduced fee for providing title insurance.
Effect of the Bill – Incentives for Motor Vehicle Glass Insurance Claims
The bill provides that a motor vehicle repair shop may not offer a customer a rebate, gift, gift card, cash,
coupon, or other thing of value in exchange for making an insurance claim for motor vehicle glass
replacement or repair, including related services. The bill prohibits an employee of a motor vehicle
repair shop or a nonemployee, who is compensated by a motor vehicle repair shop for the solicitation of
claims, from offering such an inducement.
Advanced Driver Assistance Systems (ADAS)
ADAS include automatic emergency braking, lane and highway assistance features, and driver
monitoring.11 They make roadways safer and help save lives by using radar, lidar, cameras, computer
imaging, sensors, networking, and other features.12 While repair or replacement of motor vehicle glass
often includes calibration or recalibration of ADAS, the Repair Act does not currently include a definition
of ADAS.
Effect of the Bill – ADAS
The bill establishes that it is a violation of law for a motor vehicle repair shop, or an employee of such
shop, to fail to provide electronic or written notice to a customer whether the calibration or recalibration
of an ADAS is required as part of the replacement or repair of motor vehicle glass to make the ADAS
operable and ensure that the service meets or exceeds the specifications of the vehicle manufacturer.
The bill defines ADAS for its use in the Repair Act. According to the bill, ADAS means any motor
vehicle electronic safety system associated with motor vehicle glass and designed to support the driver
and motor vehicle in a manner intended to:
Increase motor vehicle safety; and
Reduce losses associated with motor vehicle crashes.
Additionally, the bill expands the definition of “motor vehicle repair” to include ADAS calibration or
recalibration.
10 Data retrieved from Department of Financial Services Service of Process Reports application,
https://apps.fldfs.com/LSOPReports/Reports/Report.aspx (last visited Feb. 7, 2019).
11 ARM, Advanced Driver Assistance Systems,
https://www.arm.com/markets/automotive/adas?utm_source= google& utm_medium=cpc&utm_content=solutions&utm_ca
mpaign=2022_automotive_mk 12_adas&utm_term=adas%20system&gclid=Cj0K CQiA6rCgBhDVARIsAK1kGPL3OcDDt lD
90i-oBymynl453g40Y5iNZmFyjRc QmdqeFYag_tACRlYaA oPSEALw_wcB (last visited Mar. 11, 2023).
12 Florida Department of Financial Services, Agency Analysis of 2023 Senate Bill 1002, p. 1 (Feb. 27, 2023) (Senate Bill
1002 is the companion bill to PCS for HB 541).
STORAGE NAME: h0541d.COM PAGE: 3
DATE: 4/12/2023
Windshield Deductibles
A “deductible” is the amount an insured must pay before an insurance company will make any payment
on an insurance claim. Pursuant to s. 627.7288, F.S., the deductible provisions of a motor vehicle
insurance policy “delivered or issued” in Florida and providing “comprehensive coverage or combined
additional coverage shall not be applicable to the damage to the windshield of any motor vehicle
covered under such policy.”13 Therefore, a consumer who owes money on a motor vehicle often
qualifies for motor vehicle glass repair or replacement without paying a deductible out of pocket.14
Effect of the Bill – Windshield Deductibles
The bill allows an insurer, when issuing or renewing a policy providing comprehensive coverage or
combined additional coverage, to offer an insured or applicant a deductible of $250 for claims of
damage to the windshield of a motor vehicle. The insured or applicant may decline the offer of the
deductible. The bill also establishes that, if a deductible for comprehensive coverage or combined
additional coverage is applied to a loss that includes other damage in addition to windshield damage,
no windshield damage deductible may apply.
Assignment of Post-loss Motor Vehicle Glass Benefits
Motor Vehicle Glass Replacement and Repair
Florida law has no specific requirements applicable to insurance claims made for damaged motor
vehicle glass.15 Instead, these claims are handled according to the terms of a consumer’s motor vehicle
insurance policy.16 Some Florida motor vehicle insurers have set up a network of motor vehicle glass
repair shops that will provide motor vehicle glass repair or replacement at negotiated rates. 17 If a
consumer utilizes one of these network shops, the consumer’s motor vehicle glass is repaired or
replaced and paid for directly by the insurance company.18 If an insured uses an motor vehicle glass
repair shop that is not within the insurer’s network, the provider often obtains an assignment of benefits
from the consumer.19
An assignment of benefits (AOB) is a binding agreement between an insured and a provider of repair
services that allows a third-party, in this instance a motor vehicle glass repair shop, to “stand in the
shoes” of the insured to obtain the benefits the insured is entitled to under the motor vehicle insurance
contract, including payment of the claim. The glass repair shop to which the insured has assigned
benefits can negotiate directly with, or file a lawsuit in the name of the insured against, the insurer if the
insurer and the glass repair company do not agree on the amount that the insurer will pay for the motor
vehicle glass claim.
13 Combined additional coverage is an obsolete auto physical damage term that still appears in the Florida Insurance
Code. It refers to hazards other than fire or theft. IRMI, combined additional coverage,
https://www.irmi.com/term/insurance-definitions/combined-additional-coverage (last visited Mar. 11, 2023).
14 Department of Financial Services, supra note 6.
15 Dale Parker and Brendan McKay, Florida Auto Glass Claims: A Crack ed System, Trial Advocate Quarterly Fall 2016,
*21 (Westlaw Citation: 35 No. 4 Trial Advoc. Q. 20).
16 Id.
17 Id.
18 See id.
19 See id.
STORAGE NAME: h0541d.COM PAGE: 4
DATE: 4/12/2023
Motor Vehicle Glass Litigation
According to data provided by the Department of Financial Services, the number of motor vehicle
glass lawsuits has increased significantly in the past decade:20
Year 2011 2012 2021 2022
Number of
Lawsuits 478 1,389 24,080 33,196
Florida law allows the insured or the assignee to obtain attorney fees from the insurer if the insured or
assignee obtains a judgment against an insurer in a lawsuit regarding an motor vehicle insurance
claim.21 However, this operates in one direction. An insurer that prevails in a lawsuit against an insured
or assignee is not permitted to recover attorney fees.22 The purpose is to “discourage contesting of
valid claims of insureds against insurance companies . . . and to reimburse successful insureds
reasonably for their outlays for attorney's fees when they are compelled to defend or to sue to enforce
their contracts. . . .”23
Some insurers have asserted that the increase in litigation is the result of the practice by some motor
vehicle glass repair shops to execute AOBs, sue for unpaid claims, and collect attorney fees under s.
627.428, F.S.24 They have also alleged that some motor vehicle glass repair shops obtain AOBs from
the insured and inflate the costs of the motor vehicle glass repair or replacement when billing insurance
companies.25 Insurers also believe that some motor vehicle glass claims submitted by assignees are
fraudulent.26 If they believe claims are fraudulent or inflated, insurers are left with a choice between
paying those claims or paying attorneys to litigate cases that may result in payment of attorney’s fees to
assignees if the insurers do not prevail regardless of the amount of increased benefit payment
awarded.
Some motor vehicle glass repair shops have argued that litigation is necessary because motor vehicle
insurers have entered into agreements with preferred vendors (i.e., the network shops) and the insurers
will not pay the “prevailing competitive price” for motor vehicle glass repair or replacement. 27 These
repair shops contend that the insurers will only pay them the price that they pay to their preferred
vendors and that they must litigate against the insurers to force them to pay the “prevailing competitive
price” provided for by insurance policies.28
Effect of the Bill – Assignment of Post-loss Motor Vehicle Glass Benefits
20 Data provided by the Department of Financial Services to the Senate Committee on Banking and Insurance on January
22, 2019 (Senate Meeting Packet), http://flsenate.gov/PublishedContent/ Committees/2018 -
2020/BI/MeetingRecords/MeetingPacket_4350.pdf (last visited Mar. 11, 2023) and data provided in Florida Department of
Financial Services, Agency Analysis of 2023 Senate Bill 1002, p. 1