2018 -- S 2679 SUBSTITUTE A

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LC005233/SUB A

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2018

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A N   A C T

RELATING TO INSURANCE - MOTOR VEHICLE BODY REPLACEMENT PARTS

     Introduced By: Senators Goodwin, Ruggerio, and McCaffrey

     Date Introduced: March 20, 2018

     Referred To: Senate Judiciary

     It is enacted by the General Assembly as follows:

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

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

     27-10.2-1. Definitions.

     As used in this chapter:

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

original equipment manufacturer part; and

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

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

     27-10.2-2. Aftermarket parts -- Time limit prohibition.

     (a) Whenever an insurance company, in adjusting a first party claim for motor vehicle

physical damage, intends to specify the use of aftermarket parts, it shall notify the insured vehicle

owner in writing. Any auto body repair shop conducting business in the state of Rhode Island

shall not use non-original equipment manufactured (OEM) parts, also referred to as aftermarket

parts, in the repair of any person's automobile, without that person giving the repairer his or her

express written consent.

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

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

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

than thirty (30) forty-eight (48) months beyond the date of manufacture.

     (c) For any automobile which is less than thirty (30) forty-eight (48) months beyond the

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

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

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

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

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

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

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

When "OEM part(s)" are used in the repair of a motor vehicle, no insurance company may

require any repairer to use repair procedures that are not in compliance with the recommendations

of the original equipment manufacturer.

     SECTION 2. 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 provide that insurance companies may not mandate the use of aftermarket

parts without consent of the vehicle owner in the repair of motor vehicles which are less than

forty-eight (48) months beyond the date of manufacture.

     This act would take effect upon passage.

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