South Carolina State Sen. David Thomas, R-Seneca has pre-filed legislation mirroring that of the National Conference of Insurance Legislators’ (NCOIL) Model Act Regarding Motor Vehicle Crash Parts and Repair.
An amendment to the NCOIL Model Act that equated certified aftermarket crash parts with original equipment manufacturer parts (OEM) failed when considered before the NCOIL Property-Casualty Insurance Committee at its annual meeting in Austin, Texas.
Similar to the NCOIL model act, 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 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 crash part in terms of kind, quality, safety, fit and performance;
• 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.
Both the Society of Collision Repair Specialists (SCRS) and the Automotive Service Association (ASA) have opposed NCOIL’s model act. SCRS and ASA raised concerns with sections of the proposed act at the NCOIL spring and summer meetings, and at the organization’s annual meeting in November. NCOIL’s Property-Casualty Insurance Committee delayed a final decision at each of these meetings. ASA opposes the South Carolina legislation for the following issues, plus additional problems:
• Concern about the provisions regarding aftermarket parts certification
• Lack of a formal consumer written consent process for the use of replacement crash parts
• New responsibilities placed on repair facilities
More information:
Read the full text of the South Carolina legislation
