Tuesday, 12 March 2013 16:15

Maryland Legislation Would Block Insurer-mandated Parts Procurement

Maryland Delegate Mark N. Fisher (R-27B) has introduced House Bill 1375 regarding replacement parts for damaged vehicles. The bill would prevent insurers from requiring a "specific vendor or process for parts procurement" --- in effect it would block requirements like State Farm's PartsTrader initiative in the state. This legislation is one of the first attempts to address recent insurer initiatives relative to parts procurement.

The bill language prohibits an adjuster, appraiser, insurance producer or employee of an insurer from requiring a motor vehicle repair facility to use a specific vendor or process for parts procurement or other necessary material for vehicle repair.

The legislation requires an insurer to authorize repairs to be made using genuine crash parts, prohibiting an insurer from requiring repairs to be made using aftermarket crash parts during the five years after the vehicle is manufactured. The insured may consent to the use of aftermarket crash parts in writing at the time of repair.

The Automotive Service Association (ASA) and its Collision Division Operations Committee have conducted educational meetings around the country, met with insurer representatives and convened other collision industry segments to discuss crash parts and parts procurement policy.

Some collision repair organizations such as Washington Metropolitan Auto Body Association (WMABA) worked closely with Delegate Fisher in drafting the language.
"We are one hundred percent in support this bill," said WMABA Executive Director Jordan Hendler, to a trade media source. "We have already been in contact with several consumer and automobile dealer groups who will also stand with WMABA in support of this measure."
The bill has been referred to the House Committee on Economic Matters.

To view the full text of this bill and related information, please visit ASA’s legislative website at www.TakingTheHill.com.

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