California-Specific RulesQuestion 67 of 474
Under the California Auto Body Bill of Rights, which statement is correct?
a.The insurer may suggest a direct-repair facility but the insured retains the right to choose the shop
b.Only the insured's lender may select the repair facility
c.The insurer is forbidden from suggesting any repair facility
d.The insurer may require the insured to use a shop from its direct-repair network whenever the estimated cost of repair exceeds $2,500
Explanation
Insurance Code §758 and §758.5, with the implementing rules at 10 CCR §2695.8(g) and §2695.85, give the claimant the right to choose the repair facility. The insurer may suggest a direct-repair shop and may explain advantages, but it cannot require its use. The claimant's choice controls; the lender does not select the shop in a first-party physical-damage claim.
Law Reference: Cal. Ins. Code §758; §758.5This topic, taught in full in the Personal Lines Insurance Producer guide. Personal Lines Insurance Producer — Complete Study Guide (2026) — PDF + EPUB, $19.99 · 14-day refund →
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