2019 -- S 0850

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LC002156

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2019

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A N   A C T

RELATING TO INSURANCE - MOTOR VEHICLE REPLACEMENT PARTS

     Introduced By: Senators Goodwin, Ruggerio, and McCaffrey

     Date Introduced: May 01, 2019

     Referred To: Senate Judiciary

     It is enacted by the General Assembly as follows:

     SECTION 1. Section 27-10.2-2 of the General Laws in Chapter 27-10.2 entitled "Motor

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

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

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

damage, intends to specify the use of aftermarket parts, it shall notify the 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 that are less than

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

     (c) For any automobile that is less than forty-eight (48) months beyond the date of

manufacture, the insurer and the auto body repair 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;

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. 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.

     (d) 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.

     (e) This chapter shall not apply to the repair or replacement of motor vehicle glass

performed by licensed motor vehicle glass repair shops for non-collision related damage pursuant

to chapter 38.5 of title 5.; provided, the owner of the vehicle is notified in writing that installation

of an aftermarket glass will require re-calibration of safety related systems, for which cost the

insurer is responsible; provided, further, that an OEM glass is installed if specifically requested

by the vehicle owner.

     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 REPLACEMENT PARTS

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     This act would require that the owner of a vehicle be notified in writing that installation

of an aftermarket glass will require re-calibration of safety related systems, for which cost the

insurer is responsible.

     This act would take effect upon passage.

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LC002156

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