NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A578
SPONSOR: Magnarelli TITLE OF BILL: An act to amend the insurance law, in relation to
collision or comprehensive coverage on motor vehicles
PURPOSE:
The bill would exempt vehicle glass repair shops from Section 2610
subsection (c) of the NYS Insurance Law.
SUMMARY OF PROVISIONS:
Section 1 - Amends Section 2610 of the insurance law by providing an
exemption to subsection (c).
Section 2 - Effective Date.
JUSTIFICATION:
Subsection (b) of Section 2610 of the Insurance Law has consistently
recognized the difference between collision body repair and vehicle
glass repair and replacement services. Currently, there is an exception
for claims "solely involving window glass" from the ban on insurance
companies suggesting or recommending certain repair shops. This is in
recognition of the high-volume nature of glass repair, and the fact that
the window glass repair referral process differs from the collision
repair process. Therefore, this legislation extends that exemption to
the disclosure requirements of subsection (c) (Chapter 278 of 2016).
Vehicle glass claims are typically conducted via telephone between the
insurer, the glass shop and the policy holder and consistently receives
a high level of customer satisfaction. Estimates are generally unneces-
sary and not provided to the customer as part of the vehicle glass
claims process, enabling consumers to enjoy a transaction that is rela-
tively seamless. Adding the requirements of subsection (c) to claims
solely involving window glass would add unnecessary delays to the
current process, create confusion for the policyholder and increase
costs for insurers.
LEGISLATIVE HISTORY:
New Bill.
FISCAL IMPLICATIONS:
None.
EFFECTIVE DATE:
This act shall take effect on the same date and in the same manner as
chapter 236 of the laws of 2016, takes effect.
