Bill Text: NY S00338 | 2013-2014 | General Assembly | Introduced

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Bill Title: Prohibits insurers from limiting payment on claims for damage to motor vehicles based on pricing caps for labor, parts, paint or repair materials; prohibits insurers from recommending a particular repair facility; and requires insurers to provide and retain a signed notice to claimants in relation to insured's right to have a vehicle repaired in the shop of his/her choice.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Engrossed - Dead) 2014-06-23 - referred to insurance [S00338 Detail]

Download: New_York-2013-S00338-Introduced.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                          338
                              2013-2014 Regular Sessions
                                   I N  S E N A T E
                                      (PREFILED)
                                    January 9, 2013
                                      ___________
       Introduced  by  Sen.  DeFRANCISCO -- read twice and ordered printed, and
         when printed to be committed to the Committee on Insurance
       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)(1)  NO  INSURER  IN  PROCESSING  ANY  SUCH  CLAIM, SHALL LIMIT THE
    4  PAYMENT OF SUCH CLAIM FOR DAMAGE TO A  MOTOR  VEHICLE  REPAIR  BASED  ON
    5  PRICING  CAPS  FOR LABOR, PARTS, PAINT OR REPAIR MATERIALS. ALL ELEMENTS
    6  OF SUCH A CLAIM FOR DAMAGES SHALL BE NEGOTIATED WITH THE INSURED, OR HIS
    7  OR HER DESIGNATED REPRESENTATIVE, BY A DULY LICENSED APPRAISER.
    8    (2) IF A RECOMMENDATION OR SUGGESTION OF AN AUTOMOTIVE REPAIR FACILITY
    9  IS MADE BY THE INSURER, AND ACCEPTED BY THE CLAIMANT, THE INSURER  SHALL
   10  CAUSE  THE  DAMAGED  VEHICLE TO BE RESTORED TO ITS CONDITION IMMEDIATELY
   11  PRIOR TO THE LOSS AT NO ADDITIONAL  COST  TO  THE  CLAIMANT  OTHER  THAN
   12  DEDUCTIONS  STATED IN THE POLICY. SHOULD THE INSURER FAIL TO RESTORE THE
   13  VEHICLE TO ITS CONDITION IMMEDIATELY PRIOR  TO  THE  LOSS,  THE  INSURER
   14  SHALL  AT  NO ADDITIONAL EXPENSE TO THE CLAIMANT CAUSE THE VEHICLE TO BE
   15  RESTORED TO ITS CONDITION IMMEDIATELY PRIOR TO THE LOSS AT A SHOP OF THE
   16  CLAIMANT'S CHOICE. THE INSURER SHALL MAINTAIN IN ITS FILE, A  STATEMENT,
   17  SIGNED  BY  THE CLAIMANT, PLAINLY PRINTED IN NO LESS THAN 10 POINT TYPE:
   18  "PURSUANT TO SECTION 2610 OF THE INSURANCE LAW, AN INSURANCE COMPANY MAY
   19  NOT LIMIT PAYMENT BASED ON PRICING  CAPS  FOR  LABOR,  PARTS,  PAINT  OR
   20  REPAIR  MATERIALS.  AN  INSURER CANNOT REQUIRE THAT REPAIRS BE MADE TO A
   21  MOTOR VEHICLE IN A PARTICULAR PLACE OR REPAIR SHOP. YOU HAVE  THE  RIGHT
   22  TO HAVE YOUR VEHICLE REPAIRED IN THE SHOP OF YOUR CHOICE".
   23    S  2. This act shall take effect on the first of January next succeed-
   24  ing the date on which it shall have become a law and shall apply to  all
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD01477-01-3
       S. 338                              2
    1  policies  and contracts issued, renewed, modified, altered or amended on
    2  or after such effective date; provided, however,  that  effective  imme-
    3  diately, the addition, amendment and/or repeal of any rule or regulation
    4  necessary  for  the implementation of this act on its effective date are
    5  authorized and directed to be made  and  completed  on  or  before  such
    6  effective date.