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: A6902
SPONSOR: Englebright TITLE OF BILL:
An act to amend the insurance law, in relation to collision and compre-
hensive coverage on motor vehicles
PURPOSE OR GENERAL IDEA OF BILL:
Amends the insurance law directing 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 neces-
sary for the repair of a motor vehicle.
SUMMARY OF PROVISIONS:
Section 1 amends Subsection (a) of section 2610 of the insurance law.
DIFFERENCE BETWEEN ORIGINAL AND AMENDED VERSION (IF APPLICABLE):
JUSTIFICATION:
Currently, insurance companies have been directing auto repair busi-
nesses to procure their parts from an online source and will only reim-
burse 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 Equip-
ment 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 suppli-
ers and to ensure that these parts are of OEM quality.
PRIOR LEGISLATIVE HISTORY:
2013-14 A7234 referred to insurance
2015-16 A6684 advanced to third reading
2017-18 A6861 referred to insurance
2019-20 A5698 referred to insurance
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
None.
EFFECTIVE DATE:
This act shall take effect immediately.
STATE OF NEW YORK
________________________________________________________________________
6902
2021-2022 Regular Sessions
IN ASSEMBLY
April 13, 2021
___________
Introduced by M. of A. ENGLEBRIGHT, MAGNARELLI, MONTESANO, COOK, COLTON,
ZEBROWSKI, WEPRIN, GUNTHER, ABINANTI, JEAN-PIERRE, STECK -- Multi-
Sponsored by -- M. of A. DiPIETRO, McDONOUGH, PEOPLES-STOKES,
J. RIVERA, THIELE -- read once and referred to the Committee on Insur-
ance
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.
LBD10821-01-1
