2014 -- S 2835

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LC005242

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2014

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A N   A C T

RELATING TO INSURANCE - MOTOR VEHICLE BODY REPLACEMENT PARTS

     

     Introduced By: Senators Goodwin, and Ruggerio

     Date Introduced: March 26, 2014

     Referred To: Senate Judiciary

     It is enacted by the General Assembly as follows:

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     SECTION 1. The title of Chapter 27-10.2 of the General Laws entitled "Motor Vehicle

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Body Replacement Parts" is hereby amended to read as follows:

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CHAPTER 10.2

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Motor Vehicle Body Replacement Parts

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CHAPTER 10.2

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MOTOR VEHICLE REPLACEMENT PARTS

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     SECTION 2. Sections 27-10.2-1 and 27-10.2-2 of the General Laws in Chapter 27-10.2

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entitled "Motor Vehicle Body Replacement Parts" are hereby amended to read as follows:

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     27-10.2-1. Definitions. -- As used in this chapter:

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      (1) "Aftermarket part" means a motor vehicle body replacement part that is not an

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original equipment manufacturer part; and

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      (2) "Original equipment manufacturer part" or "OEM part" means a motor vehicle body

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replacement part manufactured by the manufacturer of the motor vehicle being repaired.

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     27-10.2-2. Aftermarket parts -- Time limit prohibition. -- (a) Whenever an insurance

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company, in adjusting a first party claim for motor vehicle physical damage, intends to specify

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the use of aftermarket parts, it shall notify the insured in writing. Any auto body repair shop

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conducting business in the state of Rhode Island shall not use non-original equipment

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manufactured (OEM) parts, also referred to as aftermarket parts, in the repair of any person's

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automobile, without that person giving the repairer his or her express written consent.

 

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      (b) No insurance company may require the use of aftermarket parts when negotiating

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repairs with any repairer unless the repairer has written consent from the vehicle owner to install

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aftermarket parts. The provisions of this section shall apply only to automobiles which are less

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than thirty (30) months beyond the date of manufacture.

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      (c) For any automobile which is less than thirty (30) months beyond the date of

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manufacture, the insurer and the auto body repairs shop must provide a written notice to the

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vehicle owner that: (i) he or she may require the insurer to pay for and the auto body shop to

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install "original equipment manufacturer parts" or "OEM parts" in the repair of a motor vehicle

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body replacement; or (ii) he or she may require the insurer to pay for and the auto body shop to

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install "non-original equipment manufacturer parts" (non-"OEM parts") in the repair of a motor

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vehicle body replacement. To comply with this provision, written notice may be provided on the

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appraisal written on behalf of the insurer and the estimate prepared by the auto body repair shop.

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     SECTION 3. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO INSURANCE - MOTOR VEHICLE BODY REPLACEMENT PARTS

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     This act would amend the definition of the term "aftermarket part" to refer to all motor

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vehicle replacement parts and would amend the title of the chapter 10.2 to reference the change.

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     This act would take effect upon passage.

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