Section 56.07 - Disclosures to ConsumersEvery insured under a plan shall be given full and adequate disclosure at the time of the purchase or renewal of the policy. The disclosure statement shall, at a minimum, contain the following:
(a) An explanation of the insured's rights and obligations under the plan, including a brief description of the appropriate claims procedure as described above in 211 CMR 56.05(2);(b) Identification of the repair shop(s) or individual(s) who shall perform the repair work in the event of a claim;(c) A statement that if the repair is made at a registered repair shop which is one of the insurer's participating repair shops, neither the repair shop nor the insurer shall require the claimant to pay more than any applicable deductible to have the repair work completed, and any dispute as to the amount of the appraised damage shall be resolved between the participating repair shop and the insurer;(d) A statement that the insured may elect to participate in the plan and receive a list of participating repair shops, which may be updated at the time of any claim, or, should a claim arise under the policy, the insured may choose to pursue the claim without regard to the plan, but that the claim will be subject to the permissible benefit limitations imposed in accordance with 211 CMR 56.05(10);(e) Disclosure of the dollar amount or percentage discount offered in conjunction with the participating repair shop endorsement;(f) Disclosure, if applicable, of the fact that the insurer's participating repair shops are contractually bound to install used or non-OEM parts instead of new or OEM parts whenever available, are appropriate and safe;(g) A statement that if the claimant agrees to participate in the participating repair shop plan, he or she receives the appropriate discount on the premium charges, and at the time of a claim, in fact has repairs performed at a participating repair shop, the insurer will guarantee the materials and workmanship of the repair, and the cost of the repair to the claimant will not exceed the amount of any applicable deductible;(h) The procedure for resolving claimants' disputes concerning access and quality of repairs under the plan; and(i) Such other information as will aid the claimant in exercising his or her rights under the plan, including provisions regarding emergency repairs and criteria used in determining which shops shall be listed among the insurer's participating shops.Amended by Mass Register Issue 1342, eff. 6/30/2017.Amended by Mass Register Issue 1346, eff. 6/30/2017.