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Bill prohibits insurers from requiring collision repair facilities to use specific vendors or processes for parts procurement.
Maryland Delegate Mark N. Fisher (R-27B) has introduced House Bill 1375 regarding replacement parts for damaged vehicles. The bill has been referred to the House Committee on Economic Matters.
This bill includes language that prohibits an adjuster, appraiser, insurance producer or employee of an insurer from requiring a motor vehicle repair facility to use a specific vendor or process for parts procurement or other necessary material for vehicle repair. The legislation requires an insurer to authorize repairs to be made using genuine crash parts, prohibiting an insurer from requiring repairs to be made using aftermarket crash parts during the five years after the vehicle is manufactured. The insured may consent to the use of aftermarket crash parts in writing at the time of repair.
This Maryland legislation is one of the first attempts to address recent insurer initiatives relative to parts procurement. The Automotive Service Association (ASA) and its Collision Division Operations Committee have conducted educational meetings around the country, met with insurer representatives and convened other collision industry segments to discuss crash parts and parts procurement policy.