What's happening
This bill prohibits insurers from limiting auto repair claim payments based on pricing caps and ensures vehicles are fully restored at no extra cost to claimants.
Why it matters
Prevents insurers from setting arbitrary pricing limits. on labor, parts, paint, or repair materials, potentially resulting in higher-quality repairs and fairer settlements for policyholders.
Requires all repair cost elements to be negotiated. between the insurer and the claimant or their representative, increasing transparency and giving consumers more say in the repair process.
Mandates full vehicle restoration if the insurer recommends a repair shop,. ensuring that claimants aren’t left with diminished-value vehicles or unexpected out-of-pocket costs, aside from their policy deductible.
Holds insurers accountable for repair quality,. as they must pay for additional repairs at a shop of the claimant’s choice if their recommended facility fails to restore the vehicle to its pre-loss condition.
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Who cares
Headline styles
Protect Auto Repair Choices
Plain English, a few words. Used as the page title.
Sponsors
History
- Referred to insurance
- Print number 414a
- Amend and recommit to insurance
- Referred to insurance
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Stop Insurer Repair Payment Limits
In Senate Committee · Insurance · Sponsor John A. DeFrancisco
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
414--A
2017-2018 Regular Sessions
IN ASSEMBLY
January 9, 2017
Introduced by M. of A. MAGNARELLI, HOOPER, ENGLEBRIGHT, GUNTHER, ABINAN- TI, STECK -- Multi-Sponsored by -- M. of A. COLTON, COOK, CUSICK, GALEF, TITONE -- read once and referred to the Committee on Insurance -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee
AN ACT to amend the insurance law, in relation to collision or comprehensive coverage on motor vehicles
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 2610 of the insurance law is amended by adding a new subsection (d) to read as follows:
(d)(1) No insurer in processing any such claim, shall limit the payment of such claim for damage to a motor vehicle repair based on pricing caps for labor, parts, paint or repair materials. All elements of such a claim for damages shall be negotiated with the insured, or his or her designated representative, by a duly licensed appraiser.
(2) If a recommendation or suggestion of an automotive repair facility is made by the insurer, and accepted by the claimant, the insurer shall cause the damaged vehicle to be restored to its condition immediately prior to the loss at no additional cost to the claimant other than deductions stated in the policy. Should the insurer fail to restore the vehicle to its condition immediately prior to the loss, the insurer shall at no additional expense to the claimant cause the vehicle to be restored to its condition immediately prior to the loss at a shop of the claimant's choice.
§ 2. This act shall take effect on the first of January next succeeding the date on which it shall have become a law and shall apply to all policies and contracts issued, renewed, modified, altered or amended on or after such effective date; provided, however, that effective immediately, the addition, amendment and/or repeal of any rule or regulation necessary for the implementation of this act on its effective date are authorized and directed to be made and completed on or before such effective date.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD00569-04-7
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.