Prohibits insurers, providing collision or comprehensive coverage of motor vehicles, from requiring repair shops to use specific vendors or processes for acquisition of vehicle repair parts and materials.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A6684
SPONSOR: Englebright (MS) TITLE OF BILL: An act to amend the insurance law, in relation to
collision and comprehensive coverage on motor vehicles
PURPOSE OR GENERAL IDEA OF THE BILL: Amends the insurance law direct-
ing that no insurer providing collision or comprehensive loss shall
require a repair facility to use a specific vendor or process for the
procurement of parts or other materials necessary for the repair of a
motor vehicle.
SUMMARY OF PROVISIONS:
Section 1 amends Subsection (6) of section 2610 of the insurance law.
JUSTIFICATION: Currently, insurance companies have been directing
auto repair businesses to procure their parts from an online source and
will only reimburse the repair shop if they do so. The online source
only provides the repair shop with the lowest priced replacement part,
often times from out of state. These replacement parts are most often
not Original Equipment Manufactured (OEM) parts and therefore are of
sub-quality and not up to the most stringent safety standards. This bill
simply allows auto repair shops to continue to procure replacement parts
from local suppliers and to ensure that these parts are of OEM quality.
LEGISLATIVE HISTORY: 2013-14 A7234 referred to insurance
FISCAL IMPLICATIONS: None.
STATE OF NEW YORK
________________________________________________________________________
6684
2015-2016 Regular Sessions
IN ASSEMBLY
March 30, 2015
___________
Introduced by M. of A. ENGLEBRIGHT, MAGNARELLI, MONTESANO, COOK, COLTON,
ZEBROWSKI, DUPREY, GRAF, CROUCH, WEPRIN, MAGEE, ROBERTS, HOOPER, BRIN-
DISI, CLARK, GUNTHER, ABINANTI, SKOUFIS -- Multi-Sponsored by -- M. of
A. ARROYO, CURRAN, DiPIETRO, McDONALD, McDONOUGH, McKEVITT, NOJAY,
PEOPLES-STOKES, RAIA, RIVERA, SCHIMEL, SEPULVEDA, STEC, THIELE -- read
once and referred to the Committee on Insurance
AN ACT to amend the insurance law, in relation to collision and compre-
hensive coverage on motor vehicles
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subsection (a) of section 2610 of the insurance law is
2 amended to read as follows:
3 (a) Whenever a motor vehicle collision or comprehensive loss shall
4 have been suffered by an insured, no insurer providing collision or
5 comprehensive coverage therefor shall require that repairs be made to
6 such vehicle in a particular place or shop or by a particular concern,
7 nor require a repair facility to use a specific vendor or process for
8 the procurement of parts or other materials necessary for the repair of
9 a motor vehicle.
10 § 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD01144-01-5
