| The
Montana Department of Commerce and State Auditor Mark O'Keefe
together today filed complaints against three Washington-based
auto glass brokers, claiming the companies violated state laws
by engaging in unfair trade practices. The state claims that
Cascade Auto Glass, Montana Auto Glass (also known as Olympic
Auto Glass), and Montana Auto Glass Specialists, Inc. (a
subsidiary of Olympic Auto Glass), used promotions in an attempt
to funnel all insurance related business to the three companies.
“Montana law
specifically outlaws the practices we allege these businesses
are taking part in,” said O’Keefe. “We believe in
maintaining a level playing field, so smaller shops can have a
legitimate shot at making it in the marketplace.”
Cascade, Montana
Auto Glass, and Montana Auto Glass Specialists are alleged to be
either offering to pay $100 to consumers or to allow consumers
to use the same $100 to avoid paying their insurance deductible,
thus incurring no out-of-pocket expenses for having their
windshields replaced. O’Keefe and the Department of Commerce
allege the offer is clearly intended to reduce the insured’s
net cost by reducing the deductible the insured is responsible
for under the insurance policy.
The state contends
that the actions of the respondents specifically violate a
section of Montana law that forbids an auto glass shop from
offering to pay all or part of an insurance policy’s
deductible. The state also claims the respondents may be guilty
of insurance fraud because they are presenting misleading
information to an insurance company pertaining to an insurance
claim.
The hearing on the
Cascade complaint is scheduled for August 11, 1999, the hearing
on the Montana Auto Glass complaint is scheduled for August 10,
and the hearing on the Montana Auto Glass Specialists complaint
is August 9. All three hearings are scheduled to take place in
the upstairs conference room at the Department of Commerce
Building, 1424 Ninth Avenue, Helena, MT.
Info Contact> Paul Bergen (406) 444-2495
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