Prohibits insurers from limiting payment on claims for damage to motor vehicles based on pricing caps for labor, parts, paint or repair materials; prohibits insurers from recommending a particular repair facility; and requires insurers to provide and retain a signed notice to claimants in relation to insured's right to have a vehicle repaired in the shop of his/her choice.
STATE OF NEW YORK
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338
2013-2014 Regular Sessions
IN SENATE(Prefiled)
January 9, 2013
___________
Introduced by Sen. DeFRANCISCO -- read twice and ordered printed, and
when printed to be committed to the Committee on Insurance
AN ACT to amend the insurance law, in relation to collision or 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. Section 2610 of the insurance law is amended by adding a
2 new subsection (c) to read as follows:
3 (c)(1) No insurer in processing any such claim, shall limit the
4 payment of such claim for damage to a motor vehicle repair based on
5 pricing caps for labor, parts, paint or repair materials. All elements
6 of such a claim for damages shall be negotiated with the insured, or his
7 or her designated representative, by a duly licensed appraiser.
8 (2) If a recommendation or suggestion of an automotive repair facility
9 is made by the insurer, and accepted by the claimant, the insurer shall
10 cause the damaged vehicle to be restored to its condition immediately
11 prior to the loss at no additional cost to the claimant other than
12 deductions stated in the policy. Should the insurer fail to restore the
13 vehicle to its condition immediately prior to the loss, the insurer
14 shall at no additional expense to the claimant cause the vehicle to be
15 restored to its condition immediately prior to the loss at a shop of the
16 claimant's choice. The insurer shall maintain in its file, a statement,
17 signed by the claimant, plainly printed in no less than 10 point type:
18 "PURSUANT TO SECTION 2610 OF THE INSURANCE LAW, AN INSURANCE COMPANY MAY
19 NOT LIMIT PAYMENT BASED ON PRICING CAPS FOR LABOR, PARTS, PAINT OR
20 REPAIR MATERIALS. AN INSURER CANNOT REQUIRE THAT REPAIRS BE MADE TO A
21 MOTOR VEHICLE IN A PARTICULAR PLACE OR REPAIR SHOP. YOU HAVE THE RIGHT
22 TO HAVE YOUR VEHICLE REPAIRED IN THE SHOP OF YOUR CHOICE".
23 § 2. This act shall take effect on the first of January next succeed-
24 ing the date on which it shall have become a law and shall apply to all
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD01477-01-3
S. 338 2
1 policies and contracts issued, renewed, modified, altered or amended on
2 or after such effective date; provided, however, that effective imme-
3 diately, the addition, amendment and/or repeal of any rule or regulation
4 necessary for the implementation of this act on its effective date are
5 authorized and directed to be made and completed on or before such
6 effective date.
