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Thursday, 28 February 2019 17:32

NV Introduces Bill Requiring OEM Procedures, Prohibiting Aftermarket Parts on Newer Cars

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Four Nevada legislators recently introduced Assembly Bill 173, which would require repairers to adhere to OEM repair procedures and prohibit the use of aftermarket parts on vehicles 5 years old or newer.

 

Assemblymen Richard Carrillo (D), Edgar Flores (D), Susie Martinez (D) and Bea Duran (D) are the bill’s sponsors.

 

The bill would add the following verbiage to NRS 690B (which includes Nevada’s anti-steering law): “An insurer shall not require any body shop or garage to repair a motor vehicle in a manner which is contrary to the recommendations of the manufacturer of the motor vehicle.”

 

This update would enact into law a prohibition against what Nevada Insurance Commissioner Barbara Richardson deemed an unfair claims settlement practice in a 2016 Department of Insurance bulletin. She wrote, “If an insurer does not provide the required disclosures or refuses to authorize repairs in accordance with (OEM) specifications and/or repair industry standards, the insurer is engaging in unfair claims-settlement practices as defined in NRS 686A.310.”

 

Despite the 2016 bulletin, last year Property and Casualty Chief Insurance Examiner Rajat Jain refused to confirm whether the agency considered it “reasonable” for the insurance company to reimburse the cost of following OEM repair procedures. In a letter to the SCRS, Jain wrote, “Repair procedures and instructions are not within the Division’s purview. The terms and benefits stated in the policy would be reviewed.”

 

Assembly Bill 173 would cement this legislation in the event that Richardson’s successor does not agree that failing to follow OEM repair procedures is an unfair claims settlement practice.

 

The proposed bill would also prevent insurers from requiring the use of aftermarket parts on vehicles younger than five years as of the date of damage without written consent from the consumer.

 

Assembly Bill 173 states, “An insurer shall not require a body shop or garage to use aftermarket parts to repair physical damage to a motor vehicle that was manufactured less than 60 months before the date of the damage unless the insurer has obtained written consent from the owner of the motor vehicle to install aftermarket parts.


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