S T A T E   O F   N E W   Y O R K
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                                  8085

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                               May 4, 2009
                               ___________

Introduced  by  M. of A. BALL -- read once and referred to the Committee
  on Consumer Affairs and Protection

AN ACT to amend the general business law,  in  relation  to  choosing  a
  preferred motor vehicle repairer and the cost of said repairs

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. The general business law is amended by adding a new section
198-c to read as follows:
  S 198-C. PREFERRED MOTOR VEHICLE REPAIRER AND COST OF  REPAIRS.    (A)
(1)  NO AUTOMOBILE PHYSICAL DAMAGE APPRAISER SHALL RECOMMEND, REQUEST OR
REQUIRE THAT APPRAISALS OR REPAIRS SHOULD OR SHOULD NOT  BE  MADE  IN  A
SPECIFIED FACILITY OR REPAIR SHOP OR SHOPS.
  (2)  THE  APPRAISER  SHALL  INCLUDE  WITH  THE APPRAISAL THE FOLLOWING
NOTICE IN CLEAR AND CONSPICUOUS BOLDFACE TYPE OF AT LEAST 10 POINT TYPE:
  PURSUANT TO NEW YORK STATE LAW, THE CONSUMER HAS A RIGHT TO CHOOSE THE
REPAIR FACILITY TO COMPLETE REPAIRS TO A MOTOR VEHICLE; AND AN INSURANCE
COMPANY MAY NOT INTERFERE WITH THE CONSUMER'S CHOICE OF REPAIRER.
  (3) NO INSURANCE COMPANY DOING BUSINESS IN THIS  STATE,  OR  AGENT  OR
ADJUSTER  FOR  SUCH  COMPANY  SHALL  RECOMMEND,  REQUEST  OR REQUIRE ANY
INSURED TO USE A SPECIFIC PERSON FOR THE PROVISION OF  AUTOMOBILE  PHYS-
ICAL  DAMAGE REPAIRS, AUTOMOBILE GLASS REPLACEMENT, GLASS REPAIR SERVICE
OR GLASS PRODUCTS.
  (4) AS USED IN THIS SECTION, "RECOMMEND,  REQUEST  OR  REQUIRE"  SHALL
INCLUDE  ANY  ACT  TO  INFLUENCE A CONSUMER'S DECISION INCLUDING BUT NOT
LIMITED TO (I) REDUCING THE AMOUNT OF DEDUCTIBLE OR PREMIUM OR  OFFERING
ADDITIONAL WARRANTIES IF THE CONSUMER CHOOSES A PREFERRED REPAIR FACILI-
TY,  OR  (II) SUGGESTING THAT CHOOSING A FACILITY OTHER THAN A PREFERRED
REPAIR FACILITY WILL RESULT IN DELAYS IN REPAIRING THE MOTOR VEHICLE,  A
LACK  OF  GUARANTY  FOR  REPAIR WORK OR ADDITIONAL COSTS TO THE INSURED,
PROVIDED THAT AN INSURANCE COMPANY OR APPRAISER MAY PROVIDE  AN  INSURED

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11317-01-9

              

A. 8085                             2

WITH  AN ALPHABETICAL LIST OF ALL LICENSED REPAIRERS WITHIN THE ZIP CODE
AND ADJOINING ZIP CODES OF THE INSURED'S ADDRESS.
  (B) (1) ALL CLAIMS PAID BY AN INSURER, A HOLDING COMPANY OF AN INSURER
OR  A  WHOLLY OWNED SUBSIDIARY OF AN INSURER FOR ANY LOSS TO MOTOR VEHI-
CLES OR ANY CLAIM FOR DAMAGES TO MOTOR VEHICLES, SHALL BE  PAID  TO  THE
CLAIMANT  BY  CHECK,  ELECTRONIC TRANSFER TO THE CLAIMANT OR OTHER MEANS
THAT PROVIDE THE CLAIMANT IMMEDIATE ACCESS TO THE FUNDS.
  (2) THE LABOR RATE FOR THE REPAIR OF DAMAGE TO A MOTOR VEHICLE THAT IS
PAID BY AN INSURER, A HOLDING COMPANY OF AN INSURER OR  A  WHOLLY  OWNED
SUBSIDIARY OF AN INSURER TO THE CLAIMANT SHALL BE BASED ON THE USUAL AND
CUSTOMARY  RATE  FOR SUCH REPAIRS. AS USED IN THIS PARAGRAPH, "USUAL AND
CUSTOMARY RATE" SHALL MEAN  THE  LABOR  RATE  THAT  THE  GENERAL  PUBLIC
COMMONLY  PAYS  FOR  SIMILAR  REPAIRS  ON  SIMILAR  VEHICLES IN THE SAME
GEOGRAPHIC AREA OF THE STATE.
  (3) ANY VIOLATION OF THE PROVISIONS OF  THIS  SECTION  BY  AN  INSURER
SHALL BE DEEMED AN UNFAIR OR DECEPTIVE INSURANCE PRACTICE.
  S 2. This act shall take effect immediately.