PRINTER'S NO. 2370
No. 1910 Session of 1999
INTRODUCED BY SCHRODER, BARRAR, BELFANTI, BLAUM, BROWNE, CLARK,
M. COHEN, COLAFELLA, FRANKEL, HARHART, HORSEY, McGILL,
NAILOR, PETRARCA, RUBLEY, SHANER, SOLOBAY, STABACK,
TANGRETTI, E. Z. TAYLOR, TIGUE, TRELLO, WALKO, WILLIAMS, WILT
AND YOUNGBLOOD, OCTOBER 4, 1999
REFERRED TO COMMITTEE ON INSURANCE, OCTOBER 4, 1999
AN ACT
1 Prohibiting insurers from requiring use of nonoriginal
2 equipment-manufacturer aftermarket parts for repairs during a
3 vehicle's warranty period without consent of the insured.
4 The General Assembly of the Commonwealth of Pennsylvania
5 hereby enacts as follows:
6 Section 1. Short title.
7 This act shall be known and may be cited as the Automobile
8 Replacement Parts Act.
9 Section 2. Definitions.
10 The following words and phrases when used in this act shall
11 have the meanings given to them in this section unless the
12 context clearly indicates otherwise:
13 "Aftermarket part." A replacement for any of the
14 nonmechanical sheet metal or plastic parts which generally
15 constitute the exterior of a motor vehicle. The term includes
16 inner and outer panels.
17 "Appraisal." A monetary determination of damage incurred by
1 a motor vehicle made in order to fix the value of an insurance
2 claim. The term includes a monetary determination, whether made
3 by the insurer, its employee, its agent or a related entity or
4 by another individual or entity otherwise assigned to make the
5 appraisal.
6 "Insurer." Includes:
7 (1) any company, association or exchange engaged in the
8 business of insurance;
9 (2) a self-insurer; and
10 (3) a person authorized to represent the insurer with
11 respect to a claim if the person is acting in the scope of
12 the person's authority.
13 "Motor vehicle." As defined in 75 Pa.C.S. § 102 (relating to
14 definitions).
15 "Nonoriginal equipment manufacturer." A manufacturer other
16 than the original equipment manufacturer of the part.
17 "Nonoriginal equipment-manufacturer aftermarket part." An
18 aftermarket part made by a manufacturer other than the original
19 vehicle manufacturer or its supplier.
20 "Repair facility." Any motor vehicle dealer, garage, body
21 shop or other commercial entity, that undertakes the repair or
22 replacement of those parts which generally constitute the
23 exterior of a motor vehicle.
24 Section 3. Prohibition.
25 (a) General rule.--
26 (1) An insurer may not, directly or indirectly, require
27 the use of a nonoriginal equipment-manufacturer aftermarket
28 part in the repair of a motor vehicle.
29 (2) An insurer may not accept an appraisal or authorize
30 repair of a motor vehicle unless, after being advised that
19990H1910B2370 - 2 -
1 the consumer is not required to accept nonoriginal equipment-
2 manufacturer aftermarket parts in the repair of the motor
3 vehicle, the consumer consents in writing to the use of such
4 parts before repairs are made.
5 (b) Applicability.--This section shall apply only during the
6 period during which the motor vehicle is under warranty by the
7 manufacturer.
8 Section 4. Disclosure.
9 (a) General rule.--An insurer that writes automobile
10 insurance must include in writing as part of an appraisal for
11 motor vehicle damage repair the following information in no
12 smaller than ten-point type:
13 State law requires your written consent for the use of
14 replacement parts not made by the original manufacturer
15 during the vehicle manufacturer's warranty period. Upon
16 the expiration of the vehicle manufacturer's warranty
17 period, we may require or specify the use of replacement
18 parts not made by the original manufacturer. The use of
19 an aftermarket part may invalidate any remaining
20 warranties of the original manufacturer on that part.
21 (b) Identification.--All aftermarket parts installed on the
22 vehicle shall be clearly identified in the appraisal of the
23 repair.
24 Section 5. Enforcement.
25 The Insurance Commissioner shall enforce the provisions of
26 this act. A violation of this act shall be deemed a violation of
27 the act of July 22, 1974 (P.L.589, No.205), known as the Unfair
28 Insurance Practices Act.
29 Section 6. Effective date.
30 This act shall take effect in 60 days.
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