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House Passes Financial Stability Act, Includes Office of National Insurance The U.S. Senate passed the “Restoring American Financial Stability Act of 2010” May 20. S. 3217, authored by Sen. Christopher Dodd, D-Conn., chairman of the U.S. Senate Committee on Banking, Housing and Urban Affairs, aims to promote financial stability by improving accountability and transparency in the financial system, to end “too big to fail,” to protect the American taxpayer by ending bailouts, and to protect consumers from abusive financial services practices. S. 3217, which has been amended since originally passing the Senate Banking Committee, establishes an Office of National Insurance within the U.S. Department of the Treasury. The office will be headed by a director who is to be appointed by the secretary of the treasury.
The office’s main functions will be: • to monitor all aspects of the insurance industry, including identifying issues or gaps in the regulation of insurers that could contribute to a systemic crisis in the insurance industry or the U.S. financial system; • to recommend to the Financial Stability Oversight Council that it designate an insurer, including the affiliates of such insurer, as an entity subject to regulation as a nonbank financial company supervised by the Board of Governors pursuant to Title I of the Restoring American Financial Stability Act of 2010; • to assist the secretary in administering the Terrorism Insurance Program established in the Department of the Treasury under the Terrorism Risk Insur-
by John Yoswick Special to Autobody News
place. The demonstrations have led at least four insurers to pull back from asking shops to use certain non-OEM parts, and has led to new testing and certification efforts related to such parts. Chess’ Eileen Sottille of QPC latest presentation on such parts at CIC in April was halted at the last minute after he said he was threatened with a lawsuit by LKQ Corporation, parent company of Keystone Automotive.
See House Passes Act Page 34
ABPA Conference Airs Aftermarket Parts Certification Issues Again The fallout in recent months from concerns raised about non-OEM bumper and structural parts raised by industry trainer Toby Chess was clearly on the minds of the parts manufacturers and distributors gathered in Indianapolis, Ind., this spring for the Automotive Body Parts Association’s 30th annual meeting. At the Collision Industry Conference (CIC) this past November and January, Chess demonstrated key differences between some non-OEM structural parts and the OEM parts they are being sold to re-
See ABPA Conference, Page 18
VOL. 28 ISSUE 6 JUNE 2010
Storms Across N. Texas and Oklahoma Leave Floods, Power Outages and Millions in Damages
Storms across Texas and Oklahoma The auto repair business is still reeling wreaked havoc on the states with tornadoes from the slew of hail storms that continue to and large hail; damages are still being cal- hit the state. culated. Fierce winds and heavy rain caused thousands of power outages across the Texas Metroplex area Friday May 14. While the May 10 tornadoes in Oklahoma produced insured losses in the tens of millions of dollars, the May 16 hail storms caused monumental damage to windshields and struc- A car’s back windhsield was completely broken out by hail in Oklahoma tures across the state. “Tornadoes are kind of hit and miss,” said Jerry Johns, president Body Works Inc., a mobile auto glass of the Southwest Insurance Information repairer in Oklahoma City, told customers Service in Austin, Texas. “With a hail- to wrap damaged car windows in plastic bestorm, it’s a very concentrated weather cause it could be a couple weeks before event that affects block after block after they'd get to them. block.” “We’re not scheduling at this point, we Phones at the weather service office in just have a waiting list and are calling peoFort Worth were “ringing off the hook” Fri- ple from that,” said Chris Donnelly. day afternoon with reports of storm damage, A second hail storm rained down golf said Dan Shoemaker, meteorologist. ball to baseball-sized hail on Sunday May 16, Shoemaker reported that roads had to causing further delays in windshield repairs. be barricaded in the Wise County commu“It just peppered everything in sight,” nity of Chico and in Mineral Wells. Shingles said Chris Donnelly, “it is absolutely blowwere blown from a roof in Saginaw, he said. ing us up.” The weather service posted a flash flood watch through Saturday morning because thunderstorms and possible runoff remained in the forecast. Preliminary claims figures from the May 10 tornadoes in Oklahoma project losses in the millions, said Marc Young, Oklahoma assistant insurance com- Hail caused baseball-sized dent in the roof of this vehicle missioner. Johns believes the initial storm will produce losses in the Body Works is seeing a lot of complete “tens of millions of dollars.” windshield replacements and paint less dent Johns said the two storms likely will repairs, but about 50% of cars coming in are be the second- most expensive in the 25 being totaled. years he has been in the insurance busiAt Eskridge Lexus, tents made to withness in Oklahoma. Johns, who tracks stand hail stones protected some of the the insurance industry in Oklahoma and newest cars on the lot. But about 200 other Texas, said the storms probably will be vehicles had cracked windshields and dents. topped only by the destruction of Hur“Our plans are to repair everything and ricane Ike, which ripped through Galve- then disclose that to customers,” said genston and Houston in 2008. eral sales manager Doug Berryhill.
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