Revision: June 12, 2019, 2:21 p.m.
HB 664-FN - AS AMENDED BY THE SENATE
19Mar2019... 0904h
06/06/2019 2455s
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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AMENDED ANALYSIS
This bill makes it an unfair insurance practice for an insurance company, agent, or adjuster to knowingly fail to pay a claim to the claimant or repairer to the extent the claimant's vehicle is repaired in conformance with applicable manufacturers procedures.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.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
06/06/2019 2455s 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 Paragraph; Unfair Insurance Practices; Vehicle Repair Standards. Amend RSA 417:4 by inserting after paragraph XXIII the following new paragraph:
XXIV. Vehicle Repair Standards. No insurance company, agent, or adjuster shall knowingly fail to pay a claim to the claimant or repairer to the extent the claimant’s vehicle is repaired in conformance with applicable manufacturers procedures. Notwithstanding any statements or recommendations contained in the manufacturer's procedures relative to the use of parts, governance of the use of any and all parts, in the course of an insurer-funded repair shall be solely dictated by RSA 407-D:3-a and not by a manufacturer's recommendations or procedures.
(a) If the vehicle is equipped with an advanced driver assistance system, an automotive glass company, repair facility, or insurer informing, approving, or conducting glass repair or replacement shall:
(1) Prior to approving or performing glass repair or replacement, inform the consumer if a calibration of that system is required and if such calibration will be performed;
(2) If performing such calibration, meet or exceed the manufacturer's procedures or specifications; and
(3) If a calibration was not performed or not completed successfully, inform the consumer that the vehicle should be taken to a vehicle manufacturer’s certified dealership, a qualified automobile glass company, repair facility, or other qualified repairer capable of performing the calibration of an advanced driver assistance system that meets or exceeds the manufacturer's procedures or specifications.
(b) If the vehicle is equipped with an advanced driver assistance system, an automotive glass company, repair facility, or insurer informing, approving, or conducting a scan or calibration for motor vehicle repairs or replacement:
(1) Shall not be limited to tooling or equipment dictated or recommended by the manufacturer's procedures or specifications.
(2) Shall calibrate an advanced driver assistance system meeting or exceeding the manufacturer's procedures or specifications.
(c) If a repairer does not accept a paint and materials estimate proposed by an insurer, the insurer shall reimburse the repairer based on any third-party guidelines generally accepted by automobile repair shops and insurers, and used by the repairer.
(d) “Manufacturer procedures” means a manufacturer's written procedures, specifications, tolerances, and other technical requirements or instructions with respect to repairs.
2 Effective Date. This act shall take effect 60 days after its passage.
19-0853
Amended 6/12/19
HB 664-FN- FISCAL NOTE
AS AMENDED BY THE SENATE (AMENDMENT #2019-2455s)
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 makes it an unfair insurance practice for an insurance company, agent, or adjuster to knowingly fail to pay a claim to the claimant or repairer to the extent the claimant's vehicle is repaired in conformance with applicable manufacturers procedures. The bill also requires insurers to reimburse repairers for paint materials in accordance with non-specific third party recommended 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 large enough to require an additional staff position.
AGENCIES CONTACTED:
Insurance Department