Hood begins inquiry into possible ‘steering’ practices by insurance companies

Mississippi Attorney General Jim Hood has begun an investigation of insurers that may be involved in “steering” policyholders to certain body shops.

The practice, which is illegal, coerces body shops to conduct repairs with inferior aftermarket or remanufactured parts to reduce costs in favor of the insurer.

Hood sent identical letters to 12 insurance companies on July 9, with a deadline to respond a week later. He said in the letter that if he did not receive a response by the deadline “I will assume your company is not interested in reaching an agreement and will proceed accordingly.”

All responded by the deadline. They are: Alfa Insurance, Allstate, Direct General, CT Corporation System of Mississippi, Mississippi Farm Bureau, Nationwide, Progressive, Safeco, Shelter, Travelers and USAA.

MBJ
8/6/15