Revision: Jan. 8, 2019, 8:52 a.m.
HB 432-FN - AS INTRODUCED
HOUSE BILL 432-FN
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
This bill clarifies automobile insurance reimbursement rates for repair of damaged vehicles.
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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Nineteen
Be it Enacted by the Senate and House of Representatives in General Court convened:
(c) Nothing shall prohibit any insurance company, agent or adjuster from providing to such insured person or entity the name of an automobile glass company or automobile repair company with which arrangements may have been made with respect to automobile glass or repair prices or services. If a name is provided, there must be disclosure by the insurance company, agent or adjuster to the insured person or entity that any other automobile glass company or automobile repair company or location may be used at the discretion of the insured person or entity. However, the insurer may limit payment for such work based on the fair and reasonable price in the area by repair shops or facilities providing similar services with the usual and customary guarantees as to materials and workmanship. If an independent repair shop or facility and an insurer are unable to agree on a price, then for the purposes of this section "fair and reasonable price" shall mean the price available from a recognized, competent and conveniently located, independent repair shop or facility which is willing and able to repair the damaged automobile within a reasonable time. Insurance carriers offering insurance in the state of New Hampshire shall reimburse New Hampshire businesses capable of conducting mechanical repairs covered by such insurance in the amount equal to that which is normally and reasonably charged by the mechanical repairer for like service and repairs rendered to retail consumers who are not using insurance coverage for such repair. Mechanical repairs shall be defined by the industry utilized repair estimate database providers used by the repairer.
(d) When an automobile repairer follows the paint and materials estimate from a paint manufacturer or nationally recognized third party guide or combination thereof, the insurer shall reimburse the repairer invoice based on such estimate.
HB 432-FN- FISCAL NOTE
FISCAL IMPACT: [ X ] State [ ] County [ ] Local [ ] None
Estimated Increase / (Decrease)
[ ] General [ ] Education [ ] Highway [ X ] Other - Insurance Company Assessments
This bill clarifies automobile insurance reimbursement rates for repair of damaged vehicles. The Insurance Department indicates this bill would require insurers to pay auto repair businesses for repairs the same rate as would be reasonably charged to retail consumers who are not using insurance coverage for the repair. The Department assumes this change may result in additional complaints fielded by the Consumer Services Division. Such an increase may necessitate additional staff to field the complaints and follow up with repair shops and insurance companies, however the Department is not able to determine the likelihood of a significant increase in complaints or the potential cost. The source of funds for such costs would be from assessments to insurers.