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NATIONAL CONFERENCE OF INSURANCE LEGISLATORS (NCOIL)
Proposed Substitute Amendment to
Draft Certified Aftermarket Crash Parts Model Act
(Mark-Up)
To be considered by the NCOIL Property-Casualty Insurance Committee on July 7, 2005.
Sponsored by Rep. George Keiser (ND)
Table of Contents
- Section 1. Short Title
- Section 2. Purpose
- Section 3. Definitions
- Section 4. Use of Certified Aftermarket Crash Parts
- Section 5. Notification
- Section 6. Leased and Financed Vehicles
- Section 7. Effective Date
Section 1. Short Title
This Act may be called the “Certified Aftermarket Crash Parts Model Act.”
Section 2. Purpose
The purpose of this Act is to protect consumers from inferior poor quality aftermarket crash parts used in collision repair. to repair vehicles by requiring that all non-car company aftermarket crash parts be certified by an independent third party. This Act further requires notification by the body repair shop or an insurance estimate as to the use of certified aftermarket crash parts. Notification regarding identification of the parts’ manufacturer, so long as that manufacturer can be identified by mechanized processes or systems, is also required. This Act creates a market incentive for the use of aftermarket crash parts in collision repair that are certified by an independent third party creating a presumption that they are of like kind and quality to car company parts. This Act requires notification by the collision repairer or on an insurance estimate as to the use of certified aftermarket crash parts and identification of the manufacturer of the part.
Section 3. Definitions
1. “Aftermarket crash part” - A motor vehicle replacement part, manufactured by other than the original equipment manufacturer, for any of the non-mechanical parts made of sheet metal, plastic, fiberglass or of similar material which generally constitute the exterior of a motor vehicle, including the following parts: outer panels; hoods; fenders; doors; trunk lids; exterior lighting; reflective devices; exterior coverings of bumpers but not including windows or hubcaps. The aforementioned categories may be expanded as new certification standards are developed by entities qualified under paragraph (4) of this Section.
2. “Car Company” - A motor vehicle manufacturer or distributor that produces or markets, under its own name, crash parts under its own name for use in motor vehicles that it manufactures or distributes under its own name.
- 3. “Non-Car Company” or “Independent Manufacturer” - A manufacturer or distributor that produces or markets
, under its own name, aftermarket exterior lighting, reflective devices, or crash parts for use in motor vehicles that it does not manufacture or distribute.
- 4. “Independent Third Party Certifier” - A certifying entity, to be qualified and acceptable for purposes of this Act, shall register with the insurance commissioner and have:
(1) not be owned, operated, or maintained by any car company or non-car company manufacturer of aftermarket crash parts;(2) conform to all generally accepted guidelines for independent, third party certification and standard setting programs;(3) have adopted written standards containing conditions to be fulfilled by a manufacturer of crash parts;(4) test or contract with an independent testing organization that tests crash parts, using suitable equipment and techniques;(5) administer its certification program in a non-discriminatory manner regarding any manufacturer or supplier of crash parts;(6) provide a system to determine that certified parts continue to equal or exceed the parts placed on the vehicle during initial assembly in terms of fit, finish, quality and performance and, failing to so conform, to decertify and advise crash part users of withdrawals of certification for any such part;(7) provide mechanisms for quickly receiving inquiries and promptly resolving disputes that arise under the program in regard to consumers, insurers or repair shops;(8) provide a means of identifying each certified crash part and provide a system of security that guards against misuse of the identification;(9) provide updated lists of certified crash parts on at least a weekly basis; and(10)provide the insurance department [or other appropriate state agency] and the public with an annual report underscoring any significant developments, problems or changes relating to certification procedures or requirements.
- Accreditation to the International Organization for Standardization (ISO)/International Electronic Commission (IEC) Guide 17025: General requirements for the competence of calibration and testing laboratories for the automotive industry.
- Accreditation to ISO/IEC Guide 62: General requirements for bodies operation assessment and certification/registration of quality systems for the automotive industry.
- Accreditation to ISO/IEC Guide 65: General requirements for bodies operating product certification systems for the automotive industry.
- Accreditation by the American Association of Laboratory Accreditation (A2LA) or similar body for all aspects of testing related to Federal Motor Vehicle Safety Standards (FMVSS) for automotive lighting and reflective devices.
- Accreditation by the American National Standards Institute (ANSI) as a standards developer for aftermarket crash repair parts.
- 5. “Certified aftermarket crash part” -
An aftermarket crash part for which a certification has been issued by an independent third party certifier as defined in Section 3(4) of this Act. All aftermarket crash parts certified shall be warranted by the manufacturer, distributor and/or the insurer as being equal to or exceeding the parts placed on the vehicle during initial assembly in terms of fit, finish, quality and performance. An aftermarket crash part for which a certification has been issued by an independent third-party certifier and a label identifying the part as certified is affixed to each individual part. The manufacturer or distributor and the insurer shall warrant a certified aftermarket crash part.
- 6. “Insurer” - An insurance company and any person authorized to represent the insurer with respect to a claim and who is acting within the scope of the person’s authority.
- 7. “Repair Facility” - A motor vehicle dealer, garage, body shop or other commercial entity which undertakes the repair or replacement of those parts that generally constitute the exterior of the motor vehicle.
- Section 4. Use of Certified Aftermarket Crash Parts
All non-car company aftermarket crash parts, as defined in Section 3(1), which are used to repair a motor vehicle and which are certified, shall be presumed to be of like kind and quality to car company parts and in compliance with the applicable section of the Unfair Claim Settlement Practices Act (if there is one). suitable replacement parts.
Section 5. Notification
In all instances the written estimate prepared by the insurer, or the repair facility, or both, shall clearly identify the manufacturer of each such part so long as that manufacturer can be identified by automated processes or through the manufacturer’s warranty. A notification shall be attached to, or included in, the estimate and shall contain the following information in no smaller than 12 10-point type: THIS ESTIMATE HAS BEEN PREPARED BASED ON THE USE OF CRASH PARTS SUPPLIED BY THE MANUFACTURER OF YOUR VEHICLE OR CERTIFIED AFTERMARKET CRASH PARTS SUPPLIED BY AN INDEPENDENT MANUFACTURER. ALL AFTERMARKET CRASH PARTS USED IN THE PREPARATION OF THIS ESTIMATE ARE WARRANTEED BY THE MANUFACTURER OR DISTRIBUTOR OF SUCH PARTS AND/OR AN INSURER FOR WHICH THE ESTIMATE WAS WRITTEN. THIS ESTIMATE HAS BEEN PREPARED BASED ON THE USE OF CRASH PARTS SUPPLIED BY THE MANUFACTURER OF YOUR VEHICLE, CERTIFIED AFTERMARKET CRASH PARTS, CRASH PARTS SUPPLED BY AN INDEPENDENT MANUFACTURER, OR RECYCLED OR SALVAGED CRASH PARTS. CERTIFIED AFTERMARKET CRASH PARTS AND CRASH PARTS PRODUCED BY THE MANUFACTURER OF YOUR VEHICLE ARE WARRANTED BY THE MANUFACTURER OR DISTRIBUTOR OF THE PARTS AND THE INSURER FOR WHICH THE ESTIMATE WAS WRITTEN.
Section 6. Leased and Financed Vehicles
No individual, company or agent shall impose any penalty upon an individual leasing or financing a motor vehicle that repairs said vehicle using certified aftermarket crash parts.
Section 7. Effective Date
This act shall be effective on [insert date] twelve months from date of enactment.
SYNOPSIS
SYNOPSIS
This bill is designed to protect consumers from inferior crash parts used in the repair of their motor vehicle. Non-car company (independent) manufacturers of non-mechanical parts used in repair of automobiles shall undergo certification by an independent third party. This certification provides notice to the public that the crash parts used to repair the vehicle, equal or exceed the parts placed on the vehicle during initial assembly in terms of fit, finish, quality and performance.
The consumer is further protected by the requirement that the insurance estimate or the body repair shop will furnish a notification identifying the manufacturer of the certified part (so long as that manufacturer can be identified by automated processes or through the manufacturer’s warranty) and that the part is warranted by the manufacturer. Since aftermarket crash parts must be certified, there shall be no penalty imposed on an individual who finances or leases a motor vehicle for the use of non-car company crash parts.
This bill is designed to protect the consumer from poor quality aftermarket crash parts while reducing the cost of collision repairs. Insurers are encouraged to use aftermarket crash parts that are certified by independent third-party certifiers. This certification provides a minimum standard of quality which otherwise is indeterminate.
The consumer is further protected by the requirement that the insurance estimate or the body repair shop furnish a notification identifying the manufacturer of the certified part and that the certified part is warranted by the manufacturer or distributor and insurer. Since the aftermarket crash part being used on the vehicle is certified no penalty can be imposed on an individual who finances or leases a motor vehicle for the use of non-car company crash parts.
Additions to proposed model act indicated by boldface underline.
Deletions from proposed model act indicated by boldface strikethrough.
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