A07738 Summary:

BILL NOA07738A
 
SAME ASSAME AS S05639-A
 
SPONSORMagnarelli
 
COSPNSRMcDonald
 
MLTSPNSR
 
Amd 2610, Ins L
 
Requires insurers to provide a copy of its repair estimate to the insured and include a disclosure relating to insured's right to have a vehicle repaired in the shop of his/her choice.
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A07738 Actions:

BILL NOA07738A
 
05/26/2015referred to insurance
06/03/2015reported referred to codes
06/08/2015reported referred to rules
06/10/2015reported
06/10/2015rules report cal.302
06/10/2015ordered to third reading rules cal.302
01/06/2016referred to insurance
05/10/2016reported referred to codes
05/17/2016reported
05/19/2016advanced to third reading cal.678
06/14/2016amended on third reading 7738a
06/17/2016passed assembly
06/17/2016delivered to senate
06/17/2016REFERRED TO RULES
06/17/2016SUBSTITUTED FOR S5639A
06/17/20163RD READING CAL.1986
06/17/2016PASSED SENATE
06/17/2016RETURNED TO ASSEMBLY
07/13/2016delivered to governor
07/21/2016signed chap.236
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A07738 Committee Votes:

CODES Chair:Lentol DATE:05/17/2016AYE/NAY:17/2 Action: Favorable
LentolAyeGrafNay
SchimmingerAyeGiglioAye
WeinsteinAyeMcKevittExcused
BrennanExcusedMontesanoNay
WrightAyeRaAye
PretlowAyeTenneyAye
CookAye
CymbrowitzAye
TitusAye
O'DonnellExcused
LavineAye
PerryAye
ZebrowskiAye
AbinantiAye
WeprinAye
MosleyAye

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A07738 Floor Votes:

DATE:06/17/2016Assembly Vote  YEA/NAY: 128/8
AbbateYCrespoYGottfriedYLopezYPalumboERSimonY
AbinantiYCrouchYGrafNOLupardoYPaulinYSimotasY
ArroyoYCurranYGuntherYLupinacciYPeoples-StokesYSkartadosY
AubryYCusickYHarrisYMageeYPerryYSkoufisY
BarclayYCymbrowitzYHawleyNOMagnarelliYPichardoYSolagesY
BarrettYDavilaYHevesiYMalliotakisNOPretlowYStecY
BarronYDenDekkerYHikindERMarkeyYQuartYSteckY
BenedettoYDilanYHooperYMayerYRaYStirpeY
BichotteYDinowitzYHunterYMcDonaldYRaiaYTediscoY
BlakeYDiPietroERHyndmanYMcDonoughYRamosYTenneyER
BlankenbushNODupreyYJaffeeYMcKevittYRichardsonYThieleY
BrabenecYEnglebrightYJean-PierreYMcLaughlinERRiveraYTitoneY
BraunsteinYFahyYJohnsYMillerYRobinsonYTitusY
BrennanERFarrellYJoynerYMontesanoNORodriguezYWalkerY
BrindisiERFinchERKatzERMorelleYRosenthalYWalterY
BronsonYFitzpatrickYKavanaghYMosleyYRozicYWeinsteinY
BuchwaldYFriendNOKearnsYMoyaYRussellYWeprinY
ButlerYGalefYKimERMurrayYRyanYWilliamsY
CahillYGanttYKolbYNojayNOSaladinoYWoernerY
CancelYGarbarinoYLalorNONolanYSantabarbaraYWozniakER
CastorinaYGiglioYLavineYOaksYSchimelYWrightER
CerettoYGjonajYLawrenceYO'DonnellYSchimmingerYZebrowskiY
ColtonYGlickYLentolYOrtizYSeawrightYMr SpkrY
CookYGoldfederYLiftonYOtisYSepulvedaY
CorwinYGoodellYLinaresYPalmesanoYSimanowitzY

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A07738 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A7738A
 
SPONSOR: Magnarelli
  TITLE OF BILL: An act to amend the insurance law, in relation to collision or comprehensive coverage on motor vehicles   PURPOSE OR GENERAL IDEA OF BILL: The bill would protect the rights of insured motorists 'to have their vehicles repaired at the shop of their choice. It does this by requiring insurance companies to inform the insured of their rights under the law.   SUMMARY OF SPECIFIC PROVISIONS: Amends Section 2610 of the Insurance LaWto require insurers to place in the repair estimate a statement informing.the insured of their right to have their vehicle repaired at a shop of their choice.   JUSTIFICATION: An economic impact report prepared in 2006 by Frederic B. Jennings, Jr., Ph.D. for the NYS Auto Collision Technicians Association, Inc., provides evidence that automobile insurance companies in New York State are arti- ficially suppressing payment for labor rates paid to auto body repair shops, and are thereby jeopardizing the safety of drivers on New York roads. The report argues that suppression of labor rates has reduced the quality of repairs completed in many auto body repair shops, and there- fore has jeopardized driver safety. In an effort to reduce costs, automobile insurance companies enter into "preferred" shop agreements with auto body repair shops, such that the preferred shop provides a discount to individuals insured by that insur- ance company. Automobile insurance companies may then refer claimants to those shops when asked for a referral-Under current law, insurance companies are permitted to pay the lowest price estimate on repairs, as long, as the repairs restore the vehicle to pre-accident condition. The President of the Auto Collision- Technicians Association asserts that member shops regularly see customers in need of re-repairs-for a poor job done by another body shop, generally the "preferred shop" recommended by the insurance company: In most instances, the insurance company must pay for the cost of the re-repair after significant hassle and legal negotiation on the part of the consumer. The Association estimates that this need for regular re-repairs to fix poor initial repair jobs actually has the effect of increasing auto insurance premi- ums, despite the claims of auto insurance companies that suppression of labor rates reduces monthly premiums to customers. Preferred shops establish relationships with the insurers by agreeing to complete repair work within the.price guidelines set by the insurance companies. This practice Of establishing rigid price guidelines or caps goes beyond the legitimate right of the insurer to negotiate the price of repair. It has the effect of limiting consumer choices by dividing repair shops into two groups: the cut-rate shops preferred by the insur- ers, and independent shops which can be effectively black-listed by insurance company policies and procedures. The proposed legislation would require insurers to inform customers of their right to select a repair shop and to make decisions regarding the type of repair done to their vehicle.   PRIOR LEGISLATIVE HISTORY: New bill. Similar to A.1537 of 2015.   FISCAL IMPLICATIONS: None.   EFFECTIVE DATE: 180 days after becoming law.
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A07738 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         7738--A
                                                                Cal. No. 678
 
                               2015-2016 Regular Sessions
 
                   IN ASSEMBLY
 
                                      May 26, 2015
                                       ___________
 
        Introduced by M. of A. MAGNARELLI, McDONALD -- read once and referred to
          the  Committee  on Insurance -- recommitted to the Committee on Insur-
          ance in accordance with Assembly  Rule  3,  sec.  2  --  reported  and
          referred  to  the  Committee  on  Codes  --  reported  from committee,
          advanced to a third reading, amended and ordered reprinted,  retaining
          its place on the order of third reading
 
        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) The insurer shall provide a copy of its  repair  estimate  to  the
     4  insured  that  includes  the following disclosure, plainly printed in no
     5  less than 12 point type: "PURSUANT TO SECTION 2610 OF THE INSURANCE LAW,
     6  AN INSURANCE COMPANY CANNOT REQUIRE THAT REPAIRS  BE  MADE  TO  A  MOTOR
     7  VEHICLE IN A PARTICULAR PLACE OR REPAIR SHOP. YOU HAVE THE RIGHT TO HAVE
     8  YOUR VEHICLE REPAIRED IN THE SHOP OF YOUR CHOICE".
     9    § 2. This act shall take effect on the one hundred eightieth day after
    10  it shall have become a law and shall apply to all policies and contracts
    11  issued, renewed, modified, altered or amended on or after such effective
    12  date;  provided,  however,  that  effective  immediately,  the addition,
    13  amendment and/or repeal of any rule  or  regulation  necessary  for  the
    14  implementation  of  this  act  on  its effective date are authorized and
    15  directed to be made and completed on or before such effective date.
 
 
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD11279-05-6
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