Bill Text: NH SB513 | 2020 | Regular Session | Introduced
Bill Title: Relative to vehicle repair standards.
Spectrum: Slight Partisan Bill (Republican 5-2)
Status: (Introduced - Dead) 2020-06-16 - Vacated from Committee and Laid on Table, Motion Adopted, Voice Vote; 06/16/2020 Senate Journal 8 [SB513 Detail]
Download: New_Hampshire-2020-SB513-Introduced.html
SB 513-FN - AS INTRODUCED
2020 SESSION
20-2925
11/01
SENATE BILL 513-FN
AN ACT relative to vehicle repair standards.
SPONSORS: Sen. Birdsell, Dist 19; Sen. Watters, Dist 4; Sen. Bradley, Dist 3; Rep. Packard, Rock. 5; Rep. Weyler, Rock. 13; Rep. Williams, Hills. 4; Rep. Steven Smith, Sull. 11
COMMITTEE: Commerce
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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 manufacturer's 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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
20-2925
11/01
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Twenty
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 manufacturer's 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) In this paragraph, “manufacturer's 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.
20-2925
11/25/19
SB 513-FN- FISCAL NOTE
AS INTRODUCED
AN ACT relative to vehicle repair standards.
FISCAL IMPACT: [ X ] State [ ] County [ ] Local [ ] None
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| Estimated Increase / (Decrease) | |||
STATE: | FY 2020 | FY 2021 | FY 2022 | FY 2023 |
Appropriation | $0 | $0 | $0 | $0 |
Revenue | $0 | $0 | $0 | $0 |
Expenditures | $0 | Indeterminable Increase | Indeterminable Increase | Indeterminable Increase |
Funding Source: | [ ] General [ ] Education [ ] Highway [ X ] Other - Assessments on Insurers | |||
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METHODOLOGY:
The Insurance Department indicates this bill requires insurers to pay auto repair facilities the cost of following manufacturers' repair procedures. The Department assumes this would likely lead to an increase in complaint filings with the Department regarding disputes between claimants and carriers over payments. The Department expects the complaints will likely be complex, especially before the exact requirements of the new law are well understood. The Department indicates it is likely an additional staff position will be needed in the Consumer Division to manage the additional complaints. In addition, the new law would likely require involvement by the Market Conduct Division in investigating the actions and practices of body shops and insurers in relation to the new law. This would likely entail increased use of the Department's RSA 400-A:20 subpoena power to obtain witness statements and documents related to use of the procedures called for in the bill. Due to the complexity of these potential investigations and exams, an additional staff position in the Market Conduct Division may also be required. The Department states there is too much uncertainty to reasonably estimate with any confidence the fiscal impact of the bill.
It is assumed this bill will not take effect until FY 2021.
AGENCIES CONTACTED:
Insurance Department
