2018 -- S 2679 SUBSTITUTE A AS AMENDED

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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:

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     SECTION 1. 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.

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     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.

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

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

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

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

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

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

 

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

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

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

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

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of the original equipment manufacturer.

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     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

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

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

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     This act would take effect upon passage.

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