S T A T E   O F   N E W   Y O R K
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                                  3961

                       2011-2012 Regular Sessions

                          I N  A S S E M B L Y

                            January 31, 2011
                               ___________

Introduced  by  M.  of  A.  MAGNARELLI,  HOOPER, ENGLEBRIGHT, SCHROEDER,
  V. LOPEZ, GUNTHER -- Multi-Sponsored by -- M. of A.  BOYLAND,  COLTON,
  COOK,  CUSICK, DESTITO, GALEF, MAYERSOHN, J. MILLER, MILLMAN, PHEFFER,
  REILLY, TITONE, WEISENBERG, WRIGHT -- read once and  referred  to  the
  Committee on Insurance

AN  ACT  to amend the insurance law, in relation to collision or compre-
  hensive coverage on motor vehicles

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

  Section  1.  Section  2610 of the insurance law is amended by adding a
new subsection (c) to read as follows:
  (C)(1) NO INSURER IN  PROCESSING  ANY  SUCH  CLAIM,  SHALL  LIMIT  THE
PAYMENT  OF  SUCH  CLAIM  FOR  DAMAGE TO A MOTOR VEHICLE REPAIR BASED ON
PRICING CAPS FOR LABOR, PARTS, PAINT OR REPAIR MATERIALS.  ALL  ELEMENTS
OF SUCH A CLAIM FOR DAMAGES SHALL BE NEGOTIATED WITH THE INSURED, OR HIS
OR HER DESIGNATED REPRESENTATIVE, BY A DULY LICENSED APPRAISER.
  (2) IF A RECOMMENDATION OR SUGGESTION OF AN AUTOMOTIVE REPAIR FACILITY
IS  MADE BY THE INSURER, AND ACCEPTED BY THE CLAIMANT, THE INSURER SHALL
CAUSE THE DAMAGED VEHICLE TO BE RESTORED TO  ITS  CONDITION  IMMEDIATELY
PRIOR  TO  THE  LOSS  AT  NO  ADDITIONAL COST TO THE CLAIMANT OTHER THAN
DEDUCTIONS STATED IN THE POLICY. SHOULD THE INSURER FAIL TO RESTORE  THE
VEHICLE  TO  ITS  CONDITION  IMMEDIATELY  PRIOR TO THE LOSS, THE INSURER
SHALL AT NO ADDITIONAL EXPENSE TO THE CLAIMANT CAUSE THE VEHICLE  TO  BE
RESTORED TO ITS CONDITION IMMEDIATELY PRIOR TO THE LOSS AT A SHOP OF THE
CLAIMANT'S  CHOICE. THE INSURER SHALL MAINTAIN IN ITS FILE, A STATEMENT,
SIGNED BY THE CLAIMANT, PLAINLY PRINTED IN NO LESS THAN 10  POINT  TYPE:
"PURSUANT TO SECTION 2610 OF THE INSURANCE LAW, AN INSURANCE COMPANY MAY
NOT  LIMIT  PAYMENT  BASED  ON  PRICING  CAPS FOR LABOR, PARTS, PAINT OR
REPAIR MATERIALS. AN INSURER CANNOT REQUIRE THAT REPAIRS BE  MADE  TO  A
MOTOR  VEHICLE  IN A PARTICULAR PLACE OR REPAIR SHOP. YOU HAVE THE RIGHT
TO HAVE YOUR VEHICLE REPAIRED IN THE SHOP OF YOUR CHOICE".

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD03159-01-1
              

A. 3961                             2

  S 2. This act shall take effect on the first of January next  succeed-
ing  the date on which it shall have become a law and shall apply to all
policies and contracts issued, renewed, modified, altered or amended  on
or  after  such  effective date; provided, however, that effective imme-
diately, the addition, amendment and/or repeal of any rule or regulation
necessary  for  the implementation of this act on its effective date are
authorized and directed to be made  and  completed  on  or  before  such
effective date.