California Code of Regulations
Title 10 - Investment
Chapter 5 - Insurance Commissioner
Subchapter 9 - Insurance Fraud
Article 7 - Direct Repair Programs and Auto Body Repair Labor Rate Surveys
Section 2698.91 - Reporting Auto Body Repair Labor Rate Surveys

Universal Citation: 10 CA Code of Regs 2698.91

Current through Register 2024 Notice Reg. No. 38, September 20, 2024

(a) For purposes of this Article, an "auto body repair labor rate survey" or "survey" is any gathering of information by an insurer, or on an insurer's behalf, from auto body repair shops regarding what auto body repair labor rate the repair shops charge, used to determine and set a specified prevailing auto body repair rate in a specific geographic area.

(b) For purposes of a survey conducted pursuant to California Insurance Code section 758(c), "prevailing auto body rate" means the rate determined and set by an insurer as a result of conducting an auto body labor rate survey of auto body repair shops in a specific geographic area.

(c) For purposes of this Article, an "auto body repair shop" or "repair shop" means an automotive repair dealer, as defined in Section 9880.1 of the Business and Professions Code, registered with, or licensed by, the Bureau of Automotive Repair as an auto body and/or paint shop.

(d) Reporting of survey results.

(1) Public information. Any labor rate survey results reported to the Department of Insurance pursuant to Insurance Code section 758 shall include the following survey data, which will be made available to the public upon request:
(A) The name and physical address of each auto body repair shop responding to the labor rate survey;

(B) The date the survey was completed;

(C) The total number of shops surveyed in the labor rate survey;

(D) The prevailing auto body rate determined and set by the insurer for each geographic area surveyed or, in the case of a survey that is intended to comply with the standards and requirements set forth in subdivision (d) of Section 2695.81 (i.e., a "Standardized Labor Rate Survey") and to be used pursuant to subdivision (e) of Section 2695.81, the prevailing auto body rate for each type of labor listed in subdivisions (d)(8)(A)3.a. through (d)(8)(A)3.h. of Section 2695.81 determined and set by the insurer for each Geographic Area (as defined in subdivision (d)(8)(A)4. of Section 2695.81) surveyed;

(E) A description of the specific geographic area covered by each prevailing labor rate reported or, in the case of a survey that is intended to comply with the standards and requirements set forth in subdivision (d) of Section 2695.81 (i.e., a "Standardized Labor Rate Survey") and to be used pursuant to subdivision (e) of Section 2695.81, a statement to this effect, together with a description of any geographic areas where a survey will not be used to quantify the labor rate component of estimates of repair prepared pursuant to Section 2695.8; and

(F) A description of the formula or method the insurer used to calculate or determine the specific prevailing auto body rate reported for each specific geographic area.

(2) Removal of nonpublic information. Any confidential information not required by this section may be removed from the labor rate survey results prior to submitting the survey to the Department of Insurance.

(e) Insurers shall submit the results of their labor rate survey to the Custodian of Records of the Department of Insurance within thirty (30) calendar days of completing the survey.

(1) A survey is complete when the insurer has compiled all the results and completed a survey report.

(2) In cases where the survey data used by an insurer is changing on a regular basis, the survey shall be submitted no less frequently than annually.

(3) The Department may require that the survey data specified in subdivision (d) of this Section 2698.91 be submitted in a standard electronic or other format usable by the Department in order to publish survey data on the Department's public website.

(f) The Department of Insurance will make the survey data specified in subdivision (d) of this section available to the public upon written request to the Custodian of Records pursuant to the California Public Records Act.

(g) The following non-public information shall be included separately from the public information in any survey submitted to the Department:

(1) the name and physical address of each shop sent a survey, but that did not respond to the survey;

(2) a copy of the survey questionnaire used to survey the auto body repair shops;

(3) the definition and description of each geographic area surveyed;

(4) in the case of a survey that is intended to comply with the standards and requirements set forth in subdivision (d) of Section 2695.81 (i.e., a "Standardized Labor Rate Survey") and to be used pursuant to subdivision (e) of Section 2695.81, the name of any shop excluded from the survey pursuant to subdivision (d)(2) of Section 2695.81, and any information the insurer has obtained indicating that the shop does not meet the standards set forth in subdivisions (d)(3) and/or (d)(4) of Section 2695.81;

(5) The name, physical address of record, and license number as recorded with the Bureau of Automotive Repair, of each shop that responded to the survey and that is a member of the insurer's Direct Repair Program, as defined in Section 2698.90. In addition, in the case of a survey that is intended to comply with the standards and requirements set forth in subdivision (d) of Section 2695.81 (i.e., a "Standardized Labor Rate Survey") and to be used pursuant to subdivision (e) of Section 2695.81, the statement required by subdivision (d)(6) of Section 2695.81, for each shop in the insurer's Direct Repair Program whose rates are used in the survey; and

(6) The labor rates reported by each shop that responded to the survey.

(h) Upon request, the Department shall have access to all survey responses, other survey records, data, computer programs, or any other information used by the insurer or any other source to develop the survey and/or determine geographic area labor rate information. The fact that information, data, or records used or relied upon by a licensee are obtained through a third-party source shall not absolve the licensee of its responsibility to provide the Department with the requested information. The licensee shall ensure that any contracts it enters into with a third party to conduct these surveys does not conflict with this requirement. This information will be held confidential pursuant to the provisions of subdivision (f) of Section 2695.81 . All survey records, questionnaires, and all other information regarding the survey shall be maintained by the insurer for a minimum of five years.

(i) Nothing in this section shall be construed to prohibit an insurer from negotiating and/or contracting with an auto body repair shop for a labor rate that is higher or lower than the prevailing auto body rate.

(j) Nothing in this section shall be construed to require an insurer to conduct an auto body repair labor rate survey.

(k) The fact that an insurer has submitted a labor rate survey pursuant to this section shall not be construed to indicate, and an insurer shall not represent, that the Department has approved the survey for use in settling and paying claims or that the Department has made a determination that the survey data is accurate and reliable.

1. New section filed 9-25-2002; operative 10-25-2002 (Register 2002, No. 39).
2. Amendment of section heading and section filed 11-30-2016; operative 1-1-2017 (Register 2016, No. 49).

Note: Authority cited: Sections 758, 12921 and 12926, Insurance Code. Reference: Section 758, Insurance Code; and Sections 6250- 6276.48, Government Code.

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