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- Referred to transportation
- Referred to transportation
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Requires motor vehicle repair shops to provide written notice to customers that an insurance company cannot require a person to use a specific repair shop
In Assembly Committee · Transportation · Sponsor David Gantt
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
Purpose
: To strengthen the existing anti-steering provisions contained within the vehicle and traffic law and insurance law by providing customers of motor vehicle repair shops with written notice stating that they cannot be required by an insurer to use any particular repair shop and by requiring insurers that have a financial interest in a repair shop to disclose that interest to their insured.
Summary
: PROVISIONS: Section 1 adds a new paragraph (c) to subdivision 4 of §398-d of the vehicle and traffic law requiring every motor vehicle repair shop to provide to each customer a written copy of the notice required to be displayed in the repair shop by section 398-d of the vehicle and traffic law. Section 2 adds a new subsection ( c) to section 2610 of the insurance law requiring insurers with a financial interest in a motor vehicle repair shop, as defined in §398-b of the vehicle and traffic law, to orally and in writing, disclose such interest to the insured at the time of loss, affirm to the insured that the insured is under no obligation to use such motor vehicle repair shop and state that the insured has the right to use any motor vehicle repair shop selected by the insured.
Justification
: Concerns have been raised about the effectiveness of current prOVISIOns prohibiting insurance companies from steering their insureds to particular motor vehicle repair shops in situations in which an insurer has a financial interest in a repair shop. This bill ameliorates that concern by requiring additional disclosures to insureds at the time of loss when a claim is processed and at motor vehicle repair shops.
Legislative history
: 2007-08:·A.198 2005-06: A.1684
Fiscal implications
: None.
Effective date
: One hundred twentieth day after enactment.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.