Relates to collision or comprehensive coverage on motor vehicles

Title of bill

An act to amend the insurance law, in relation to collision or comprehensive coverage on motor vehicles

Purpose

The bill would exempt vehicle class repair shops from section 2610 subsection (c) of the NYS Insurance Law.

Summary of provisions

Section 1 - Amends Section 2610 of the insurance law by providing an exemption to subsection (c).

Section 2 - Effective Date.

Justification

Part B of Section 2610 of the Insurance Code has consistently recognized the difference between collision body repair and vehicle glass repair and replacement services. Currently there is an exception for claims "solely involving window glass" in recognition of the high-volume nature of glass repair and the fact that the window glass repair referral process differs from the collision repair process.

Vehicle glass claims are typically conducted via telephone between the insurer (of third party), the glass shop and the policy holder and consistently receives a high level of customer satisfaction. Estimates are generally unnecessary and not provided to the customer as part of the vehicle glass claims process, enabling consumers to enjoy a transaction that is relatively seamless. Adding this requirement to claims solely involving window glass would add unnecessary delays in the current process, create confusion for the policyholder and increase costs for insurers.

Legislative history

New Bill

Fiscal implications

None.

Effective date

This act shall take effect on the same date and in the same manner as chapter 236 of the laws of 2016, takes effect.