Insurance department proposes managed-repair discounts, seeks to limit crop rebating in 02/1974

John Godfrey, North Dakota insurance commissioner, told the Industry, Business and Labor Committee that bill 02/1974 — the product of an interim study — is intended to "put some downward pressure on those rates." He said the bill contains several provisions the department supports, but highlighted two sections that had generated committee questions: a managed-repair program for first-party claims and changes to rebating rules for commercial policies.

The bill would allow insurers to offer a reduced premium or other incentives in exchange for a policyholder’s agreement to use a contractor in the insurer’s preferred network for first-party repairs. "Think of it as your good student discount, your multi policy discount," Godfrey said, describing the managed-repair provision as another discount opportunity for consumers. Deputy Commissioner John Arnold told the committee the engrossed version includes disclosures and an option for an insured to request an alternate contractor, but the department has proposed an amendment to tighten that provision so a purchaser of the managed-repair plan would be required to use the program contractor for first-party claims.

Representative Casper and other committee members pressed department staff on the practical effects of that requirement. Casper asked what happens if a…