Kentucky Auto Glass Reform Law Takes Effect After Governor Signs Senate Bill, with NICB Citing Key Role

May 2024 brought important context to the Kentucky auto glass reform story when the National Insurance Crime Bureau (NICB) publicly announced its involvement in shaping Senate Bill 29, which Governor Andy Beshear had signed into law on April 2. The organization—an association of 1,200 property and casualty insurers, vehicle rental companies, auto auctions, and self-insured organizations—had worked with Kentucky lawmakers to craft the legislation.

The NICB's stated goal was protecting consumers from what it described as deceptive practices in the auto glass repair industry. NICB Senior Director of Government Affairs Eric De Campos characterized the law as a step toward weeding out unscrupulous operators who engage in fraudulent practices such as overcharging, unnecessary repairs, and use of substandard materials.

The enacted law prohibits assignment of benefits for auto glass claims—meaning shops can no longer acquire the right to sue an insurer directly by having the policyholder sign over their insurance rights. It bars shops from offering rebates, gift cards, or other incentives in exchange for insurance claims. It requires shops to obtain an insurance claim number or a written waiver of insurance before contracting for work.

Critically, the law also requires shops to inform customers if their vehicles have ADAS technology and whether recalibration is needed after service—an explicit statutory mandate for the disclosure practice that AGSC and trade associations had long promoted as a best practice. Kentucky thus became one of the first states to make ADAS disclosure a legal requirement rather than merely an industry recommendation.

Kentucky Senator Brandon Storm, who sponsored the bill, characterized the new law as a significant step forward in addressing auto glass repair fraud and protecting consumers. Independent shops that price honestly and disclose completely will feel little operational impact from the law; shops that relied on aggressive solicitation or AOB-driven litigation models face fundamental business model changes.

For shop operators in other states, the Kentucky law—and the NICB's explicit role in drafting it—signaled that the insurance industry was actively working to extend the Florida AOB reform model across the country. Shops in states without similar laws should anticipate similar legislative proposals and engage with their trade associations to participate in the policy process.