Contact:
| Caroline Holland
(202) 543-1440
c.holland@att.net
|
For Release:
| Immediate
News Bulletin PR-36
June 22, 2007
|
Rhode Island Senate Passes Bill Clarifying Consumer Notice
Bill Says Insurers, Auto Repair Shops Must Comply with Decisions of Vehicle
Owners
WASHINGTON, D.C., June 22, 2007 - Rhode Island Bill 516 - which has passed
in the state Senate - requires repair shops to inform consumers about their
right to have original equipment manufacturer (OEM) parts used in the repair
of their vehicle. The bill was introduced Feb. 15, 2007, by state Sen. Kevin
Breene. This substitute version was recommended by the Senate Constitutional
and Regulatory Committee in early June.
S.B. 516 applies to both insurers and auto body repair shops, and requires
them to provide written notice to consumers that they are entitled to OEM
parts for the repair of their vehicle. The majority of this bill was already
in place under Rhode Island General Law. However, this version of the bill
reinforces the vehicle owners' right to choose which kinds of parts to use
in the repair of the vehicle and states that the auto repair shops must comply
with this choice. It also requires the insurers to pay for the services rendered
by the auto repair shops regardless of which type of parts are chosen by
the vehicle owner.
The revised bill includes this additional text: "For an automobile which
is less than thirty (30) months beyond the date of manufacturer, the insurer
and the auto body repair shop must provide a written notice to the vehicle
owner that: (i) he or she may require the insurer to pay for and the auto
body shop to install 'original equipment manufacturer parts' or 'OEM parts'
in the repair of a motor vehicle body replacement; or (ii) he or she may
require the insurer to pay for and the auto body shop to install 'non-original
equipment manufacturer parts' ('non-OEM parts') in the repair of a motor
vehicle body replacement. To comply with this provision, written notice may
be provided on the appraisal written on behalf of the insurer and the estimate
prepared by the auto body repair shop."
S.B. 516 has been sent to the state House of Representatives and was referred
to the House Committee on Corporations. If passed in the House, this act
would take effect Jan. 1, 2008.
ASA supports state disclosure laws that require insurers and auto collision
facilities to obtain the written consent of vehicle owners as to what type(s)
of replacement crash parts are being used to repair their vehicle.
For more information, visit www.TakingTheHill.com. Click on the link for
Legislative Reports, then on Aftermarket Parts Disclosure Laws. There, you
will find a link to a report detailing the aftermarket parts laws for each
state. Under Rhode Island, the full text of Rhode Island Senate Bill 516
and an additional article regarding this bill are included.
The Automotive Service Association is the largest not-for-profit trade association of its kind serving an international membership base that includes numerous affiliate, state and chapter groups from all segments of the automotive service industry. ASA's headquarters is in Bedford, Texas.
ASA advances professionalism and excellence in the automotive repair industry through education, representation and member services. For additional information about ASA, including past news releases, go to www.asashop.org, or visit ASA's legislative Web site at www.TakingTheHill.com.
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