What's happening
This bill prohibits insurers from capping payments for auto repairs and ensures vehicles are fully restored after claims.
Why it matters
Prevents insurers from imposing payment caps on specific auto repair costs. (labor, parts, paint, or materials), ensuring insurance payouts more accurately reflect actual repair expenses rather than arbitrary limits.
Requires that all elements of a repair claim must be negotiated by a licensed appraiser. with the insured or their representative, giving policyholders a greater role and potentially fairer outcomes in the claims process.
Mandates that if an insurer recommends a repair shop and the claimant agrees, the insurer must fully restore the vehicle to its pre-loss condition. at no extra cost beyond the policy’s deductible, strengthening consumer protections and accountability for insurers.
If the insurer’s recommended repair does not restore the vehicle to its prior condition, the insurer must pay for further repairs at a shop chosen by the claimant. , further empowering consumers and increasing pressure on insurers and their preferred shops to ensure quality repairs.
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Who cares
Headline styles
Stop Insurer Repair Restrictions
Plain English, a few words. Used as the page title.
Sponsors
4 Multi-sponsors
History
- Referred to insurance
- Referred to insurance
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
2911
2019-2020 Regular Sessions
IN ASSEMBLY
January 28, 2019
Introduced by M. of A. MAGNARELLI, ENGLEBRIGHT, GUNTHER, ABINANTI, STECK -- Multi-Sponsored by -- M. of A. COLTON, COOK, GALEF, JEAN-PIERRE -read once and referred to the Committee on Insurance
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.
LBD00655-01-9
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.