Revision: March 27, 2019, 10:02 a.m.
HB 664-FN - AS AMENDED BY THE HOUSE
19Mar2019... 0904h
2019 SESSION
19-0853
01/06
HOUSE BILL 664-FN
AN ACT relative to vehicle repair standards.
SPONSORS: Rep. Williams, Hills. 4; Rep. McBeath, Rock. 26; Rep. Goley, Hills. 8; Rep. Green, Rock. 13; Rep. Packard, Rock. 5; Sen. Bradley, Dist 3; Sen. Birdsell, Dist 19; Sen. Watters, Dist 4
COMMITTEE: Commerce and Consumer Affairs
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ANALYSIS
This bill requires an insurer to reimburse an automobile repairer for all repairs if the repairer follows an original equipment manufacturer recommended collision repair procedures.
This bill is a result of the committee to study reimbursement rates under automobile insurance polices, established by 2018, 13.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
19Mar2019... 0904h 19-0853
01/06
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Nineteen
AN ACT relative to vehicle repair standards.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 New Sections; Vehicle Repair Standards. Amend RSA 407-D by inserting after section 3-a the following new sections:
407-D:3-b Vehicle Repair Standards.
I. Insurers shall pay a claim to the claimant or repairer based upon the repairer’s utilization of repair procedures or specifications that conform to the original equipment manufacturer’s recommended procedures, specifications, or allowable tolerances of such vehicle year, make, model, and trim level. If the repair procedure or specification from an original equipment manufacturer includes a directive to conduct a scan, calibration, or diagnostic test of a vehicle’s electronics systems before or after the commencement of repairs, such directive shall be considered as a required part of the repair procedure. The insurer shall reimburse the repairer if the repairer follows the directive. Notwithstanding any statements or recommendations contained in the original equipment manufacturer’s repair procedures or specifications relative to the use of original equipment manufacturer parts, governance of the use of after market parts in the course of an insurer-funded repair shall be solely dictated by RSA 407-D:3-a.
II. This section shall not apply to vehicle glass repair and emplacement services including, but not limited to, the calibration of Advanced Driver Assistance System (ADAS), when done by an automobile glass company. The company shall notify their customer after repair whether calibration has been performed.
407-D:3-c Paint and Materials Estimates. When an automobile repairer follows the paint and materials estimate from a paint manufacturer, nationally recognized third party, or some combination thereof, the insurer shall reimburse the repairer invoice based on such estimate or a comparable paint and materials estimate from another paint manufacturer, nationally recognized third party guide, or some combination thereof.
2 Effective Date. This act shall take effect 60 days after its passage.
19-0853
Amended 3/25/19
HB 664-FN- FISCAL NOTE
AS AMENDED BY THE HOUSE (AMENDMENT #2019-0904h)
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 | Indeterminable Increase | Indeterminable Increase | Indeterminable Increase | Indeterminable Increase |
Funding Source: | [ ] General [ ] Education [ ] Highway [ X ] Other - Assessment on insurance companies | |||
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METHODOLOGY:
This bill requires an insurer to reimburse an automobile repairer for all repairs if the repairer follows an original equipment manufacturer recommended collision repair procedures.
The Insurance Department indicates this bill could lead to an increase in complaints to the Department's Consumer Services Division from repair facilities questioning insurers adherence to the statute. The Department is unable to predict the volume of additional queries and complaints, but believes it could be enough to require an additional staff position.
AGENCIES CONTACTED:
Insurance Department