Bill Text - HB664 (2019)

Relative to vehicle repair standards.


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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.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.

 

LBAO

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

 

 

 

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

 

 

 

 

 

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