2023 -- H 5731

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LC001987

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2023

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A N   A C T

     RELATING TO INSURANCE -- MOTOR VEHICLE REPLACEMENT PARTS

     Introduced By: Representative William W. O'Brien

     Date Introduced: February 21, 2023

     Referred To: House Corporations

     It is enacted by the General Assembly as follows:

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

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

     27-10.2-1. Definitions.

     As used in this chapter:

     (1) “Aftermarket part” means a motor vehicle replacement part that is not an original

equipment manufacturer part; and

     (2) “Original equipment manufacturer part” or “OEM part” means a motor vehicle

replacement part manufactured by the manufacturer of the motor vehicle being repaired; and

     (3) "Used part" means a motor vehicle replacement part that is a used original equipment

manufacturer part.

     SECTION 2. Chapter 27-10.2 of the General Laws entitled "Motor Vehicle Replacement

Parts" is hereby amended by adding thereto the following section:

     27-10.2-4. Standards for use of used parts.

     Whenever used parts are used for repairs to physically damaged motor vehicles, the

following standards shall apply:

     (1) The used parts shall be at least equal in kind and quality to the OEM parts in terms of

fit, quality, performance and warranty, and be from a vehicle of the same year or newer and have

the same or less mileage than the vehicle receiving the used part unless agreed to by the vehicle

owner;

     (2) To the extent practical, an insurance company shall not require the use of multiple parts

distributors to provide parts for a single repair if the parts are available from a single vendor. Chosen

vendors must provide delivery unless agreed to by the vehicle owner;

     (3) Insurers specifying the use of used parts shall make allowances for the reasonable cost

of any modifications to the parts which may become necessary when making the repair, and for the

cost of fitting, removing, returning, and/or handling used parts which do not result in the vehicle

being repaired to its condition prior to the loss;

     (4) If the used part specified by the insurer does not result in the vehicle being repaired to

its condition prior to the loss, the insurer, within three (3) days of the auto body shop notifying the

appraiser or insurer, shall allow the auto body shop to source the part or specify the use of an OEM

part unless another agreement is reached between the insurer and the vehicle owner;

     (5) The automobile body shop shall promptly notify the appraiser if the used part specified

by the insurer does not result in the vehicle being repaired to its condition prior to the loss and

permit the appraiser to reinspect the vehicle and make appropriate supplemental authorizations, if

necessary;

     (6) The automobile body shop shall provide documentation of used parts, which do not

meet the requirements of this section, as reasonably requested by the insurer. The insurer shall be

permitted to exercise any available rights of recovery against the used parts distributor.

     SECTION 3. This act shall take effect upon passage.

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LC001987

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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 define a used part and create standards for use of used parts in damaged

motor vehicles, for motor vehicle replacement parts.

     This act would take effect upon passage.

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LC001987

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