HB 664-FN - AS AMENDED BY THE SENATE

 

19Mar2019... 0904h

06/06/2019   2455s

 

2019 SESSION

19-0853

01/06

 

HOUSE BILL 664-FN

 

AN ACT relative to vehicle repair standards.

 

SPONSORS: Rep. Williams, Hills. 4; Rep. McBeath, Rock. 26; Rep. Goley, Hills. 8; Rep. Green, Rock. 13; Rep. Packard, Rock. 5; Sen. Bradley, Dist 3; Sen. Birdsell, Dist 19; Sen. Watters, Dist 4

 

COMMITTEE: Commerce and Consumer Affairs

 

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AMENDED ANALYSIS

 

This bill makes it an unfair insurance practice for an insurance company, agent, or adjuster to knowingly fail to pay a claim to the claimant or repairer to the extent the claimant's vehicle is repaired in conformance with applicable manufacturers procedures.

 

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

19Mar2019... 0904h

06/06/2019   2455s 19-0853

01/06

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Nineteen

 

AN ACT relative to vehicle repair standards.

 

Be it Enacted by the Senate and House of Representatives in General Court convened:

 

1  New Paragraph; Unfair Insurance Practices; Vehicle Repair Standards.  Amend RSA 417:4 by inserting after paragraph XXIII the following new paragraph:

XXIV.  Vehicle Repair Standards.  No insurance company, agent, or adjuster shall knowingly fail to pay a claim to the claimant or repairer to the extent the claimant’s vehicle is repaired in conformance with applicable manufacturers procedures.  Notwithstanding any statements or recommendations contained in the manufacturer's procedures relative to the use of parts, governance of the use of any and all parts, in the course of an insurer-funded repair shall be solely dictated by RSA 407-D:3-a and not by a manufacturer's recommendations or procedures.

(a)  If the vehicle is equipped with an advanced driver assistance system, an automotive glass company, repair facility, or insurer informing, approving, or conducting glass repair or replacement shall:

(1)  Prior to approving or performing glass repair or replacement, inform the consumer if a calibration of that system is required and if such calibration will be performed;

(2)  If performing such calibration, meet or exceed the manufacturer's procedures or specifications; and

(3)  If a calibration was not performed or not completed successfully, inform the consumer that the vehicle should be taken to a vehicle manufacturer’s certified dealership, a qualified automobile glass company, repair facility, or other qualified repairer capable of performing the calibration of an advanced driver assistance system that meets or exceeds the manufacturer's procedures or specifications.

(b)  If the vehicle is equipped with an advanced driver assistance system, an automotive glass company, repair facility, or insurer informing, approving, or conducting a scan or calibration for motor vehicle repairs or replacement:

(1)  Shall not be limited to tooling or equipment dictated or recommended by the manufacturer's procedures or specifications.

(2)  Shall calibrate an advanced driver assistance system meeting or exceeding the manufacturer's procedures or specifications.

(c)  If a repairer does not accept a paint and materials estimate proposed by an insurer, the insurer shall reimburse the repairer based on any third-party guidelines generally accepted by automobile repair shops and insurers, and used by the repairer.

(d)  “Manufacturer procedures” means a manufacturer's written procedures, specifications, tolerances, and other technical requirements or instructions with respect to repairs.

2  Effective Date.  This act shall take effect 60 days after its passage.

 

LBAO

19-0853

Amended 6/12/19

 

HB 664-FN- FISCAL NOTE

AS AMENDED BY THE SENATE (AMENDMENT #2019-2455s)

 

AN ACT relative to vehicle repair standards.

 

FISCAL IMPACT:      [ X ] State              [    ] County               [    ] Local              [    ] None

 

 

 

Estimated Increase / (Decrease)

STATE:

FY 2020

FY 2021

FY 2022

FY 2023

   Appropriation

$0

$0

$0

$0

   Revenue

$0

$0

$0

$0

   Expenditures

Indeterminable Increase

Indeterminable Increase

Indeterminable Increase

Indeterminable Increase

Funding Source:

  [    ] General            [    ] Education            [    ] Highway           [ X ] Other - Assessment on insurance companies

 

 

 

 

 

METHODOLOGY:

This bill makes it an unfair insurance practice for an insurance company, agent, or adjuster to knowingly fail to pay a claim to the claimant or repairer to the extent the claimant's vehicle is repaired in conformance with applicable manufacturers procedures.  The bill also requires insurers to reimburse repairers for paint materials in accordance with non-specific third party recommended procedures.

 

The Insurance Department indicates this bill could lead to an increase in complaints to the Department's Consumer Services Division from repair facilities questioning insurers adherence to the statute.  The Department is unable to predict the volume of additional queries and complaints, but believes it could be large enough to require an additional staff position.

 

AGENCIES CONTACTED:

Insurance Department