CHAPTER 186
SB 436 - FINAL VERSION
03/03/2016 0605s
03/03/2016 0854s
2016 SESSION
\t16-2881
\t05/03
SENATE BILL\t436
AN ACT\trelative to after market automobile parts.
SPONSORS:\tSen. Stiles, Dist 24; Sen. Boutin, Dist 16; Sen. Watters, Dist 4; Rep. Williams, Hills. 4; Rep. Abrami, Rock. 19
COMMITTEE:\tTransportation
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AMENDED ANALYSIS
\tThis bill prohibits an insurer from requiring or specifying the use of after market parts as defined in RSA 407-D:1 on certain leased vehicles and vehicles that have been placed in service within the last 2 years and have fewer than 30,000 miles on the odometer. The bill enacts a portion of New Hampshire department of insurance bulletin INS No. 99-14-AB, dated September 20, 1999.
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Explanation:\tMatter added to current law appears in bold italics.
\t\tMatter removed from current law appears [in brackets and struckthrough.]
\t\tMatter which is either (a) all new or (b) repealed and reenacted appears in regular type.
03/03/2016 0605s\t16-2881
03/03/2016 0854s\t05/03
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Sixteen
AN ACT\trelative to after market automobile parts.
Be it Enacted by the Senate and House of Representatives in General Court convened:
\t186:1 After Market Parts; Disclosure Required. Amend RSA 407-D:4 to read as follows:
\t407-D:4 Disclosure.
\t\tI. The insurer shall disclose to the claimant in writing, either on the estimate or on a separate document attached to the estimate, the following information in no smaller print than 10 point type:
\tThis estimate has been prepared based on the use of automobile parts not made by the original manufacturer. Parts used in the repair of your vehicle by other than the original manufacturer are required to be at least equal in like kind and quality in terms of fit, quality, and performance to the original manufacturer parts they are replacing.
\t\tII. All after market parts installed on the vehicle shall be clearly identified on the estimate of such repair.
\t\tIII. Any insurer who fails to provide the precise statement in paragraph I shall be prohibited from requesting or requiring the use of after market parts.
\t186:2 New Section: Limitation on the Use of After Market Parts; New and Leased Vehicles. Amend RSA 407-D by inserting after section 3 the following new section:
\t407-D:3-a Limitation on the Use of After Market Parts.
\t\tI. No insurer of private passenger automobiles shall require or specify the use of after market parts on:
\t\t\t(a) Vehicles that have been placed in service within the immediately preceding 2 years and that have 30,000 or fewer miles recorded on the odometer; or
\t\t\t(b) Leased vehicles if the lease provides that such parts will cause a diminution of the residual value of such vehicle.
\t\tII. In this section, "specify" includes writing repair estimates on the basis of the cost of after market parts or otherwise declining to pay for the cost of original equipment manufacturer replacement parts.
\t186:3 Effective Date. This act shall take effect January 1, 2017.
Approved: June 3, 2016
Effective Date: January 1, 2017