South Carolina State Sen. David Thomas, R-Seneca, pre-filed legislation
mirroring that of the National Conference of Insurance Legislators’
(NCOIL) Model Act Regarding Motor Vehicle Crash Parts and Repair in
December 2010. Recently, a committee vote was held to determine the
future of a much diluted bill. According to a spokeswoman from the
Insurance and Banking Committee, the bill will go back to the
subcommittee.
The Automotive Service Association (ASA) says it opposed Thomas’ bill as
originally filed. The original text, S. 70, has now been altered, and
the new bill number is S. 417. Its return to subcommittee may kill the
legislation for the year.
S. 417 defines certified aftermarket crash parts as:
“A replacement crash part that has been certified by an American
National Standards Institute (ANSI) accredited standards developer and
maintains a consensus of quality standards for competitive crash parts. A
certified aftermarket crash part is identified by a serial number
unique to each part and contains a removable tag with that serial number
that can be used to record and trace the use of that part.
Notwithstanding another provision of law, there may be only one
certification standard established for each individual crash part.”
In addition, the bill requires that an automotive repair facility
provide a customer with an itemized written estimate for all parts and
labor necessary for a specific job, and the estimate must indicate
whether a replacement crash part will be OEM, aftermarket, certified,
recycled or remanufactured.
The estimate also must:
• Identify the manufacturer or distributor of each crash part
• Disclose whether the part has a warranty
• Include the following notice: “Installing a part, other than a part
described on the written estimate, without prior approval from the
customer is unlawful. If you suspect an illegal installation of parts by
your auto repair facility, call the State Department of Insurance,
Consumer Assistance Office at (800) 768-3467.”
Finally, the bill states that an insurer may not mandate the use of
aftermarket crash parts in the repair of an insured’s motor vehicle
unless the insurer:
• Discloses in writing, in the issuance or renewal of a comprehensive or
collision insurance policy, that the insurer may specify the use of
aftermarket, certified, recycled or remanufactured crash parts
• Ensures that the specified aftermarket crash parts are warranted by
the manufacturer or distributor to equal or exceed the car company’s
warranty for the corresponding crash part. Certified aftermarket crash
parts are presumed capable of restoring a vehicle to its pre-loss
condition
• Pays the cost of any modifications to parts that may become necessary to effect the repair
• Identifies to the consumer, in a written estimate prior to the repair,
the aftermarket crash part to be used and that the aftermarket crash
part is warranted by its manufacturer or distributor rather than the
original car company
