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Nevada Legislature Reviewing Aftermarket Parts Bill

The bill would prohibit an insurer from requiring the use of aftermarket parts in the collision repair of a vehicle that is less than 60 months old unless the insurer has written consent from the owner of the motor vehicle.

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A new bill in the Nevada Legislature wants to revise repair laws related to repairing damage to motor vehicles with aftermarket parts.

The bill was sponsored by Assemblyman Richard Carrillo and entered the legislature on Feb 18. Nevada bill AB173 revises provisions relating to the repair of motor vehicles (BDR 57-835).

Currently, the existing law requires insurers to make certain disclosures to the insured owner concerning damage repairs to his or her motor vehicle. Existing law further makes it an unfair practice for an insurer to fail to provide the required disclosures or refuse to authorize repairs in accordance with manufacturer specifications or repair industry standards. In addition to rights and remedies available to the Commissioner of Insurance, an insurer is liable to its insured for any damages sustained by the insured as a result of the commission of an unfair practice (NRS 686A.310).

The legislation would add provisions that would prohibit an insurer from requiring the use of aftermarket parts for the repair of physical damage to a motor vehicle that is less than 60 months old unless the insurer has written consent from the owner of the motor vehicle. The bill would also require the insurer to provide written notice to the owner of a motor vehicle that is 60 or more months old of the insurer’s intent to require the use of aftermarket parts to repair the motor vehicle.

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The bill makes the failure to comply with the outlined terms an unfair practice in settling claims, which may be punished by administrative fines and suspension or revocation of a person’s applicable license (NRS 686A.187).

Finally, this bill requires that body shops and garages provide a written statement to an owner of a motor vehicle providing certain information about each aftermarket part used in a repair, and obtain the written consent of the owner to use the aftermarket part.

After the bill was introduced, it was sent to the Commerce and Labor Committee for review. There are currently 98 days left in the 80th session of the Nevada legislature, which only meets every two years, for the lawmakers to get the legislation to the governor.

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