S T A T E O F N E W Y O R K
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6010
2011-2012 Regular Sessions
I N A S S E M B L Y
March 3, 2011
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Introduced by M. of A. BURLING, REILICH, FINCH, KOLB, McKEVITT, MONTESA-
NO -- Multi-Sponsored by -- M. of A. JOHNS, McDONOUGH, OAKS -- read
once and referred to the Committee on Insurance
AN ACT to amend the insurance law, in relation to requiring that no
insurer or motor vehicle repair facility recommend or require the use
of Non-OEM crash parts
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Section 3411 of the insurance law is amended by adding a
new subsection (o) to read as follows:
(O)(1) NO INSURER OR MOTOR VEHICLE REPAIR FACILITY SHALL RECOMMEND OR
REQUIRE THE USE OF NON-OEM CRASH PARTS UNLESS SUCH PART SHALL EQUAL OR
EXCEED THE COMPARABLE OEM CRASH PART IN TERMS OF FIT, FORM, FINISH,
QUALITY AND PERFORMANCE.
(2) AN INSURER OR MOTOR VEHICLE REPAIR FACILITY WHICH RECOMMENDS OR
REQUIRES THE USE OF NON-OEM CRASH PARTS SHALL BE LIABLE IF ANY SUCH PART
FAILS TO EQUAL OR EXCEED THE COMPARABLE OEM CRASH PART IN TERMS OF FIT,
FORM, FINISH, QUALITY AND PERFORMANCE, INCLUDING REPLACEMENT COST AND
DAMAGES FOR INJURY TO PROPERTY OR PERSON PROVIDED THAT THE INSURER SHALL
BE EXCUSED FROM LIABILITY IF THE DAMAGES ARE CAUSED BY THE GROSS NEGLI-
GENCE OF THE MOTOR VEHICLE REPAIR FACILITY.
(3) A MOTOR VEHICLE REPAIR FACILITY THAT NEITHER RECOMMENDS NOR
REQUIRES THE USE OF NON-OEM CRASH PARTS AND INSTALLS SUCH PARTS SHALL BE
LIABLE ONLY FOR SUCH DAMAGES THAT ARE CAUSED BY THE FACILITY'S GROSS
NEGLIGENCE.
(4) FOR THE PURPOSES OF THIS SUBSECTION, TO "RECOMMEND" OR "REQUIRE"
SHALL MEAN (A) ALLOWING COMPENSATION UNDER AN INSURANCE POLICY THAT
EQUALS THE RETAIL PRICE OF AN AFTERMARKET CRASH PART OR (B) LISTING A
GENERIC CRASH PART IN AN ITEMIZED SETTLEMENT OFFER OR ESTIMATE.
(5) "NON-OEM CRASH PARTS" ARE PARTS OTHER THAN ORIGINAL MANUFACTURER
EQUIPMENT PARTS (OEM).
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD03168-01-1
A. 6010 2
(6) "ORIGINAL MANUFACTURER EQUIPMENT PARTS (OEM)" ARE PARTS WHICH ARE
MADE BY THE VEHICLE MANUFACTURER OR ONE OF ITS LICENSEES AND DISTRIBUTED
THROUGH ITS NORMAL CHANNELS. SUCH PARTS MAINTAIN THE OEM VEHICLE FACTORY
WARRANTY FOR THE REPLACED PARTS AND ANY OTHER ADJOINING OR ASSOCIATED
OEM PART OR SYSTEMS.
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, provided, however,
that effective immediately, 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 by
the commissioner of motor vehicles and the superintendent of insurance
on or before such effective date.