senate Bill S338

2013-2014 Legislative Session

Prohibits insurers from limiting payment on claims based on pricing caps and from recommending a particular repair facility, and requires notice to insureds

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Archive: Last Bill Status - Passed Senate


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jun 23, 2014 referred to insurance
Jun 20, 2014 delivered to assembly
passed senate
ordered to third reading cal.1689
committee discharged and committed to rules
Jan 08, 2014 referred to insurance
Jan 09, 2013 referred to insurance

Votes

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S338 - Details

See Assembly Version of this Bill:
A483
Current Committee:
Law Section:
Insurance Law
Laws Affected:
Amd ยง2610, Ins L
Versions Introduced in Previous Legislative Sessions:
2011-2012: S4642, A3961
2009-2010: S1517, A316

S338 - Summary

Prohibits insurers from limiting payment on claims for damage to motor vehicles based on pricing caps for labor, parts, paint or repair materials; prohibits insurers from recommending a particular repair facility; and requires insurers to provide and retain a signed notice to claimants in relation to insured's right to have a vehicle repaired in the shop of his/her choice.

S338 - Sponsor Memo

S338 - Bill Text download pdf

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

                                   338

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced  by  Sen.  DeFRANCISCO -- read twice and ordered printed, and
  when printed to be committed 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".
  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

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

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