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Friday, 03 April 2009 14:40

Major Changes Hit California Senate Parts Legislation

Parts Certification Provision Eliminated

California Senate Bill 350, “The Motor Vehicle Insurance: Automobile Repairs: Restraint Systems Act,” has been re-referred to the California Senate Banking, Finance and Insurance Committee. State Sen. Leland Y. Yee (D), author of S.B. 350, amended and re-introduced the bill to the committee.

Eliminated from the original legislation are requirements for nonoriginal equipment manufacturer crash parts to be certified by an American National Standards Institute (ANSI)-recognized entity if the parts are presumed to be at least of like kind and quality as the part being replaced in terms of fit, function and finish.

 


Current law prohibits insurance companies from requiring the use of non-original equipment manufacturer aftermarket crash parts in the repair of an insured’s vehicle unless the insured is advised of this in a written estimate prior to repairs. S.B. 350 would, in addition, prohibit the use of aftermarket crash parts unless the parts were of equal quality to the parts being replaced.
Under the proposed legislation, insurers are required to warrant that nonoriginal manufacturer aftermarket crash parts are at least equal to the original equipment manufacturer parts in terms of kind, quality, safety, fit and performance, and shall pay the cost of any modifications to those parts necessary to effect the repair.
The bill requires that the insurer advise the consumer in a written estimate of the use of nonoriginal equipment manufacturer aftermarket crash parts before repairs are made.
The Automotive Service Association (ASA) opposed the original language in S.B. 350. ASA’s collision leadership is reviewing the current version of the legislation and will submit comments to the committee.
The California State Senate Committee on Banking, Finance and Insurance will hold a hearing April 15, 2009, at 1:30 p.m. to discuss S.B. 350.

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