Your Source for Up-To-Date News and Research on the Collision Repair Industry
click here to subscribe to the FREE INSIGHT Editor's Desk News Alert Email
SUBSCRIBERS-ONLY
Today's News
INSIGHT This Month
INSIGHT Archives
Survey Center
Letter to the Editor
Business Tools
Subscription Information
CSI Reporting
Financial Analysis
IRS Audit Guide
Management/
Technical Info
Market Watch Rates
INSIGHT Inside this month's issue...
Feedback
Letter to the Editor
Friday April 24
Parts Certification Provision Eliminated from California Senate Parts Legislation
According to a statement from ASA, California Senate Bill 350, “The Motor Vehicle Insurance: Automobile Repairs: Restraint Systems Act,” has been re-referred to the California Senate Banking, Finance and Insurance Committee. State Sen. Leland Y. Yee (D), author of S.B. 350, amended and re-introduced the bill to the committee.Eliminated from the original legislation are requirements for nonoriginal equipment manufacturer crash parts to be certified by an American National Standards Institute (ANSI)-recognized entity if the parts are presumed to be at least of like kind and quality as the part being replaced in terms of fit, function and finish.
Current law prohibits insurance companies from requiring the use of non-original equipment manufacturer aftermarket crash parts in the repair of an insured’s vehicle unless the insured is advised of this in a written estimate prior to repairs. S.B. 350 would, in addition, prohibit the use of aftermarket crash parts unless the parts were of equal quality to the parts being replaced.
Under the proposed legislation, insurers are required to warrant that nonoriginal manufacturer aftermarket crash parts are at least equal to the original equipment manufacturer parts in terms of kind, quality, safety, fit and performance, and shall pay the cost of any modifications to those parts necessary to effect the repair.
The bill requires that the insurer advise the consumer in a written estimate of the use of nonoriginal equipment manufacturer aftermarket crash parts before repairs are made.
The ASA opposed the original language in S.B. 350. ASA’s collision leadership is reviewing the current version of the legislation and will submit comments to the committee.
©2009 Collision Repair Industry INSIGHT
All Rights Reserved
FEATURED
LINKS:
INSIGHT Supports the NABC!
Do You?