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Farmers Insurance drops MFN clause from new DRPs

Wednesday, August 27, 2014 - 07:00
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Following Farmers Insurance’s decision to remove Most Favored Nation (Customer) clauses from insurer direct repair programs, Dan Risley, Automotive Service Association (ASA) president and executive director, sent a letter of thanks to Jeffrey Dailey, Farmers’ chief executive officer.

Generally, Most Favored Nation (MFN) clauses stipulate that should a provider give a bottom line discount, rebate or other estimate discount on the repair costs to any insurer, the same or better bottom line discount must be given to the insurer proposing the DRP agreement. The elimination of MFN clauses has long been a policy priority for ASA.

“We are very pleased that Farmers has removed the MFN clause from the DRP agreements. I want to personally thank you and the Farmers team for your leadership in eliminating these clauses, which have become a significant burden for ASA members,” said Risley.

ASA’s collision leaders have made several trips to Washington, D.C., to discuss eliminating the clauses with congressional leaders, the U.S. Department of Justice and the Federal Trade Commission.

To view a copy of ASA’s letter to Farmers, or to learn more on ASA’s work to eliminate MFN clauses from DRP agreements, go to www.TakingTheHill.com.

The Automotive Service Association is the largest not-for-profit trade association of its kind dedicated to and governed by independent automotive service and repair professionals. ASA serves an international membership base that includes numerous affiliate, state and chapter groups from both the mechanical and collision repair segments of the automotive service industry.

ASA advances professionalism and excellence in the automotive repair industry through education, representation and member services. For additional information about ASA, including past news releases, go to www.ASAshop.org, or visit ASA’s legislative website at www.TakingTheHill.com.

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