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| 5 | 5 | | 2023 -- S 0926 |
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| 6 | 6 | | ======== |
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| 7 | 7 | | LC001997 |
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| 8 | 8 | | ======== |
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| 9 | 9 | | S T A T E O F R H O D E I S L A N D |
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| 10 | 10 | | IN GENERAL ASSEMBLY |
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| 11 | 11 | | JANUARY SESSION, A.D. 2023 |
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| 12 | 12 | | ____________ |
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| 13 | 13 | | |
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| 14 | 14 | | A N A C T |
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| 15 | 15 | | RELATING TO INSURANCE -- MOTOR VEHICLE REPLACEMENT PARTS |
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| 16 | 16 | | Introduced By: Senators Goodwin, Gallo, and Ruggerio |
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| 17 | 17 | | Date Introduced: April 04, 2023 |
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| 18 | 18 | | Referred To: Senate Judiciary |
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| 19 | 19 | | |
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| 20 | 20 | | |
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| 21 | 21 | | It is enacted by the General Assembly as follows: |
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| 22 | 22 | | SECTION 1. Section 27-10.2-1 of the General Laws in Chapter 27-10.2 entitled "Motor 1 |
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| 23 | 23 | | Vehicle Replacement Parts" is hereby amended to read as follows: 2 |
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| 24 | 24 | | 27-10.2-1. Definitions. 3 |
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| 25 | 25 | | As used in this chapter: 4 |
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| 26 | 26 | | (1) “Aftermarket part” means a motor vehicle replacement part that is not an original 5 |
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| 27 | 27 | | equipment manufacturer part; and 6 |
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| 28 | 28 | | (2) “Original equipment manufacturer part” or “OEM part” means a motor vehicle 7 |
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| 29 | 29 | | replacement part manufactured by the manufacturer of the motor vehicle being repaired; and 8 |
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| 30 | 30 | | (3) "Used part" means a motor vehicle replacement part that is a used original equipment 9 |
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| 31 | 31 | | manufacturer part. 10 |
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| 32 | 32 | | SECTION 2. Chapter 27-10.2 of the General Laws entitled "Motor Vehicle Replacement 11 |
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| 33 | 33 | | Parts" is hereby amended by adding thereto the following section: 12 |
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| 34 | 34 | | 27-10.2-4. Standards for use of used parts. 13 |
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| 35 | 35 | | Whenever used parts are used for repairs to physically damaged motor vehicles, the 14 |
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| 36 | 36 | | following standards shall apply: 15 |
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| 37 | 37 | | (1) The used parts shall be at least equal in kind and quality to the OEM parts in terms of 16 |
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| 38 | 38 | | fit, quality, performance and warranty, and be from a vehicle of the same year or newer and have 17 |
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| 39 | 39 | | the same or less mileage than the vehicle receiving the used part unless agreed to by the vehicle 18 |
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| 40 | 40 | | owner; 19 |
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| 41 | 41 | | |
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| 42 | 42 | | |
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| 43 | 43 | | LC001997 - Page 2 of 3 |
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| 44 | 44 | | (2) To the extent practical, an insurance company shall not require the use of multiple parts 1 |
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| 45 | 45 | | distributors to provide parts for a single repair if the parts are available from a single vendor. Chosen 2 |
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| 46 | 46 | | vendors must provide delivery unless agreed to by the vehicle owner; 3 |
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| 47 | 47 | | (3) Insurers specifying the use of used parts shall make allowances for the reasonable cost 4 |
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| 48 | 48 | | of any modifications to the parts which may become necessary when making the repair, and for the 5 |
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| 49 | 49 | | cost of fitting, removing, returning, and/or handling used parts which do not result in the vehicle 6 |
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| 50 | 50 | | being repaired to its condition prior to the loss; 7 |
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| 51 | 51 | | (4) If the used part specified by the insurer does not result in the vehicle being repaired to 8 |
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| 52 | 52 | | its condition prior to the loss, the insurer, within three (3) days of the auto body shop notifying the 9 |
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| 53 | 53 | | appraiser or insurer, shall allow the auto body shop to source the part or specify the use of an OEM 10 |
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| 54 | 54 | | part unless another agreement is reached between the insurer and the vehicle owner; 11 |
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| 55 | 55 | | (5) The automobile body shop shall promptly notify the appraiser if the used part specified 12 |
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| 56 | 56 | | by the insurer does not result in the vehicle being repaired to its condition prior to the loss and 13 |
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| 57 | 57 | | permit the appraiser to reinspect the vehicle and make appropriate supplemental authorizations, if 14 |
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| 58 | 58 | | necessary; 15 |
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| 59 | 59 | | (6) The automobile body shop shall provide documentation of used parts, which do not 16 |
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| 60 | 60 | | meet the requirements of this section, as reasonably requested by the insurer. The insurer shall be 17 |
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| 61 | 61 | | permitted to exercise any available rights of recovery against the used parts distributor. 18 |
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| 62 | 62 | | SECTION 3. This act shall take effect upon passage. 19 |
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| 63 | 63 | | ======== |
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| 64 | 64 | | LC001997 |
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| 65 | 65 | | ======== |
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| 66 | 66 | | |
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| 67 | 67 | | |
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| 68 | 68 | | LC001997 - Page 3 of 3 |
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| 69 | 69 | | EXPLANATION |
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| 70 | 70 | | BY THE LEGISLATIVE COUNCIL |
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| 71 | 71 | | OF |
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| 72 | 72 | | A N A C T |
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| 73 | 73 | | RELATING TO INSURANCE -- MOTOR VEHICLE REPLAC EMENT PARTS |
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| 74 | 74 | | *** |
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| 75 | 75 | | This act would define a used part and create standards for use of used parts in damaged 1 |
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| 76 | 76 | | motor vehicles, for motor vehicle replacement parts. 2 |
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| 77 | 77 | | This act would take effect upon passage. 3 |
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| 78 | 78 | | ======== |
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| 79 | 79 | | LC001997 |
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| 80 | 80 | | ======== |
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| 81 | 81 | | |
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