NY State Senate Bill S5639A

Archive: Last Bill Status Via A7738 - Signed by Governor

Introduced
In Committee
On Floor Calendar
- Passed Senate
- Passed Assembly
Delivered to Governor
Signed by Governor

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Actions

view actions (13)

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jul 21, 2016	signed chap.236
Jul 13, 2016	delivered to governor
Jun 17, 2016	returned to assembly passed senate 3rd reading cal.1986 substituted for s5639a
Jun 17, 2016	substituted by a7738a ordered to third reading cal.1986 committee discharged and committed to rules
Jun 10, 2016	print number 5639a
Jun 10, 2016	amend and recommit to insurance
Jan 06, 2016	referred to insurance
May 21, 2015	referred to insurance

Votes

Bill Amendments

Original

A (Active)

Original

A (Active)

S5639 - Details

See Assembly Version of this Bill:: A7738
Law Section:: Insurance Law
Laws Affected:: Amd §2610, Ins L

S5639 - Summary

Requires insurers to provide a copy of its repair estimate to the insured and include a disclosure relating to insured's right to have a vehicle repaired in the shop of his/her choice.

S5639 - Sponsor Memo

S5639 - Bill Text download pdf

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

                                  5639

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                              May 21, 2015
                               ___________

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) 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  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
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 is
authorized and directed to be made  and  completed  on  or  before  such
effective date.




 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11279-01-5

S5639A (ACTIVE) - Details

See Assembly Version of this Bill:: A7738
Law Section:: Insurance Law
Laws Affected:: Amd §2610, Ins L

S5639A (ACTIVE) - Summary

Requires insurers to provide a copy of its repair estimate to the insured and include a disclosure relating to insured's right to have a vehicle repaired in the shop of his/her choice.

S5639A (ACTIVE) - Sponsor Memo

 BILL NUMBER:  S5639A

 TITLE OF BILL :

An act to amend the insurance law, in relation to collision or
comprehensive coverage on motor vehicles

 PURPOSE OR GENERAL IDEA OF BILL :

The bill would protect the rights of insured motorists to have their
vehicles repaired at the shop of their choice. It does this by
requiring insurance companies to inform the insured of their rights
under the law.

 SUMMARY OF SPECIFIC PROVISIONS :

Amends Section 2610 of the Insurance Law to require insurers to place
in the repair estimate a statement informing the insured of their
right to have their vehicle repaired at a shop of their choice.

 JUSTIFICATION :

An economic impact report prepared in 2006 by Frederic B. Jennings,
Jr., Ph.D. for the NYS Auto Collision Technicians Association, Inc.,
provides evidence that automobile insurance companies in New York
State are artificially suppressing payment for labor rates paid to

auto body repair shops, and are thereby jeopardizing the safety of
drivers on New York roads. The report argues that suppression of labor
rates has reduced the quality of repairs completed in many auto body
repair shops, and therefore has jeopardized driver safety.

In an effort to reduce costs, automobile insurance companies enter
into "preferred" shop agreements with auto body repair shops, such
that the preferred shop provides a discount to individuals insured by
that insurance company. Automobile insurance companies may then refer
claimants to those shops when asked for a referral. Under current law,
insurance companies are permitted to pay the lowest price estimate on
repairs, as long as the repairs restore the vehicle to pre-accident
condition.

The President of the Auto Collision Technicians Association asserts
that member shops regularly see customers in need of re-repairs for a
poor job done by another body shop, generally the "preferred shop"
recommended by the insurance company. In most instances, the insurance
company must pay for the cost of the re-repair after significant
hassle and legal negotiation on the part of the consumer. The
Association estimates that this need for regular re-repairs to fix
poor initial repair jobs actually has the effect of increasing auto
insurance premiums, despite the claims of auto insurance companies
that suppression of labor rates reduces monthly premiums to customers.

Preferred shops establish relationships with the insurers by agreeing
to complete repair work within the price guidelines set by the
insurance companies. This practice of establishing rigid price
guidelines or caps goes beyond the legitimate right of the insurer to
negotiate the price of repair. It has the effect of limiting consumer
choices by dividing repair shops into two groups: the cut-rate shops
preferred by the insurers, and independent shops which can be
effectively black-listed by insurance company policies and procedures.

The proposed legislation would require insurers to inform customers of
their right to select a repair shop and to make decisions regarding
the type of repair done to their vehicle.

 PRIOR LEGISLATIVE HISTORY :

New bill. Similar to A.1537 of 2015.

 FISCAL IMPLICATIONS :

None.

 EFFECTIVE DATE :
180 days after becoming law.

S5639A (ACTIVE) - Bill Text download pdf

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

                                 5639--A

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                              May 21, 2015
                               ___________

Introduced  by  Sen.  DeFRANCISCO -- read twice and ordered printed, and
  when printed to be committed to the Committee on Insurance  --  recom-
  mitted to the Committee on Insurance in accordance with Senate Rule 6,
  sec.  8  --  committee  discharged, bill amended, ordered reprinted as
  amended and recommitted to said committee

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)  THE  INSURER  SHALL  PROVIDE A COPY OF ITS REPAIR ESTIMATE TO THE
INSURED THAT INCLUDES THE FOLLOWING DISCLOSURE, PLAINLY  PRINTED  IN  NO
LESS THAN 12 POINT TYPE: "PURSUANT TO SECTION 2610 OF THE INSURANCE LAW,
AN  INSURANCE  COMPANY  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 one hundred eightieth day after
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  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 on or before such effective date.



 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11279-04-6

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The New York State Senate

senate Bill S5639A

Sponsored By

Archive: Last Bill Status Via A7738 - Signed by Governor

Your Voice

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Votes

Jun 17, 2016 - floor Vote

Floor Vote: Jun 17, 2016

Jun 17, 2016 - Rules committee Vote

Rules Committee Vote: Jun 17, 2016

Bill Amendments

S5639 - Details

S5639 - Summary

S5639 - Sponsor Memo

S5639 - Bill Text download pdf

S5639A (ACTIVE) - Details

S5639A (ACTIVE) - Summary

S5639A (ACTIVE) - Sponsor Memo

S5639A (ACTIVE) - Bill Text download pdf

Comments

senate Bill S5639A

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Sponsored By

John A. DeFrancisco

Archive: Last Bill Status Via A7738 - Signed by Governor

Your Voice

Actions

Votes

Jun 17, 2016 - floor Vote

Floor Vote: Jun 17, 2016

Jun 17, 2016 - Rules committee Vote

Rules Committee Vote: Jun 17, 2016

Bill Amendments

S5639 - Details

S5639 - Summary

S5639 - Sponsor Memo

S5639 - Bill Text download pdf

S5639A (ACTIVE) - Details

S5639A (ACTIVE) - Summary

S5639A (ACTIVE) - Sponsor Memo

S5639A (ACTIVE) - Bill Text download pdf

Comments