HB1455: relative to vehicle repairs.

HB 1455-FN - AS AMENDED BY THE HOUSE

11Mar2020... 0970h

2020 SESSION

20-2403

11/01

HOUSE BILL 1455-FN

AN ACT relative to vehicle repairs.

SPONSORS: Rep. Weyler, Rock. 13; Rep. Green, Rock. 13; Rep. Williams, Hills. 4; Rep. Steven Smith, Sull. 11; Rep. Stapleton, Sull. 5

COMMITTEE: Commerce and Consumer Affairs

AMENDED ANALYSIS

This bill establishes a rebuttable presumption that manufacturer recommendations for scans and calibrations are necessary for vehicle safety and for restoration of a vehicle to its pre-loss condition, and makes it an unfair insurance practice for an insurance company, agent, or adjuster to knowingly fail to pay a claim to the claimant or repairer to the extent the claimant's vehicle is repaired in conformance with applicable manufacturer's recommendations or specifications.

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

11Mar2020... 0970h 20-2403

11/01

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Twenty

AN ACT relative to vehicle repairs.

Be it Enacted by the Senate and House of Representatives in General Court convened:

1 New Paragraph; Unfair Insurance Practices; Vehicle Repair Standards. Amend RSA 417:4 by inserting after paragraph XXIII the following new paragraph:

XXIV. Vehicle Scans, Calibrations, and Painting.

(a) There shall be a rebuttable presumption that manufacturer recommendations for scans and calibrations are necessary for vehicle safety and for restoration of a vehicle to its pre-loss condition. No insurance company, agent, or adjuster shall knowingly fail to pay a claim to the claimant unless such presumption has been rebutted by evidence that the scan and calibration are not necessary for vehicle safety and to restore a vehicle to its pre-loss condition.

(b) If the vehicle is equipped with an advanced driver assistance system, an automotive glass company, repair facility, or insurer informing, approving, or conducting glass repair or replacement shall:

(1) Prior to approving or performing glass repair or replacement, inform the consumer if a calibration of that system is required and if such calibration will be performed;

(2) If performing such calibration, meet or exceed the manufacturer's recommendations or specifications; and

(3) If a calibration was not performed or not completed successfully, inform the consumer that the vehicle should be taken to a vehicle manufacturer’s certified dealership, a qualified automobile glass company, repair facility, or other qualified repairer capable of performing the calibration of an advanced driver assistance system that meets or exceeds the manufacturer's recommendations or specifications.

(c) If the vehicle is equipped with an advanced driver assistance system, an automotive glass company, repair facility, or insurer informing, approving, or conducting a scan or calibration for motor vehicle repairs or replacement:

(1) Shall not be limited to tooling or equipment dictated or recommended by the manufacturer's recommendations for scans and calibrations.

(2) Shall calibrate an advanced driver assistance system meeting or exceeding the manufacturer's recommendations for scans and calibrations.

(d) If a repairer does not accept a paint and materials estimate proposed by an insurer, there shall be a rebuttable presumption that estimates based upon independent third party paint and material guidelines used by the repairer are necessary to restore a vehicle to its pre-loss condition. No insurance company, agent, or adjuster shall knowingly fail to pay a claim to the claimant unless this presumption has been rebutted by evidence that the paint and material estimate is not necessary to restore a vehicle to its pre-loss condition.

(e) In this paragraph, “manufacturer's recommendations for scans and calibrations” means a manufacturer's written procedures, specifications, tolerances, and other technical requirements or instructions with respect to scans and calibrations.

2 Effective Date. This act shall take effect 60 days after its passage.

LBAO

20-2403

Amended 3/20/20

HB 1455-FN- FISCAL NOTE

AS AMENDED BY THE HOUSE (AMENDMENT #2020-0970h)

AN ACT relative to vehicle repairs.

FISCAL IMPACT: [ X ] State [ ] County [ ] Local [ ] None

Estimated Increase / (Decrease)

STATE:

FY 2020

FY 2021

FY 2022

FY 2023

Appropriation

$0

$0

$0

$0

Revenue

$0

$0

$0

$0

Expenditures

$0

Indeterminable Increase

Indeterminable Increase

Indeterminable Increase

Funding Source:

[ ] General [ ] Education [ ] Highway [ X ] Other - Assessment on insurance companies

METHODOLOGY:

This bill establishes a rebuttable presumption that manufacturer recommendations for scans and calibrations are necessary for vehicle safety and for restoration of a vehicle to its pre-loss condition, and makes it an unfair insurance practice for an insurance company, agent, or adjuster to knowingly fail to pay a claim to the claimant or repairer to the extent the claimant's vehicle is repaired in conformance with applicable manufacturer's recommendations or specifications.

The Insurance Department indicates this bill could lead to an increase in complaints to the Department's Consumer Services Division from repair facilities questioning insurers adherence to the statute. The Department is unable to predict the volume of additional queries and complaints, but believes it could be large enough to require an additional staff position. In addition the new law would likely require involvement by the Market Conduct Division in investigating and examining the actions of insurers and body shops in relation to the new law. This would entail increased use of the Department's subpoena power under RSA 400-A:20 in order to obtain witness statements and documents and this would possibly require an additional staff position in the Market Conduct Division.

AGENCIES CONTACTED:

Insurance Department