The California Department of Insurance (DOI) met Nov. 16
with a select group of collision repairers, insurers, and OE and aftermarket
parts representatives to discuss proposed revisions to the California Code of
Regulations relating to repair quality and aftermarket part use.
Some of the key language the DOI is looking to add to the
Code of Regulations includes:
• The estimate…shall include, but not be limited to,
repair procedures performed in accordance with original equipment manufacturer
service specifications or, if manufacturer specifications and procedures are
not available, nationally distributed and periodically updated service
specifications that are generally accepted by the auto body repair industry. No
insurer shall willfully depart from or disregard accepted trade standards for
good and workmanlike repair in the preparation of claim settlement offers or
estimates prepared by or for the insurer. Insurers shall not prepare an estimate that deviates from the collision
repair estimating software guidelines for use and repair.
• The insurer must disclose in writing, in any estimate
prepared by or for the insurer, the fact that it will warrant that such parts
are of like, kind, quality, safety, fit and performance as original equipment
manufacturer replacement crash parts.
• Insurers specifying the use of non-original equipment
manufacturer replacement crash parts that are found to be defective, unsafe or
do not otherwise comply with this section, shall immediately cease requiring
the use of these parts and shall notify the collision repair estimating
software provider, or other estimating entity it contracts with, of the part
and request this part be removed from the collision repair estimating software.
• Insurers specifying the use of non-original equipment
manufacturer replacement crash parts, which are certified by the Certified
Automotive Parts Association (CAPA) and are found to be defective or unsafe,
shall file a Quality Complaint Report with CAPA.
• Insurers specifying the use of non-original equipment
manufacturer replacement crash parts that are found to be defective, unsafe or
do not otherwise comply with this section, shall pay for the costs associated
with returning the part and the cost to remove and replace the non-original
equipment manufacturer part with an original equipment manufacturer part.
• Insurers specifying the use of non-original equipment
manufacturer replacement crash parts that are found to be defective, unsafe or
do not otherwise comply with this section, shall pay for the costs associated
with loss of use or rental car expenses caused by the use of such part.
