2024 -- S 2440 AS AMENDED

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LC004567

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2024

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A N   A C T

     RELATING TO INSURANCE -- MOTOR VEHICLE REPLACEMENT PARTS

     Introduced By: Senators Gallo, Lawson, Pearson, Ciccone, Murray, DiPalma, Bissaillon,

     Date Introduced: February 12, 2024

     Referred To: Senate Judiciary

     It is enacted by the General Assembly as follows:

     SECTION 1. Section 27-10.2-2 of the General Laws in Chapter 27-10.2 entitled "Motor

Vehicle Replacement Parts" is hereby amended to read as follows:

     27-10.2-2. Aftermarket parts — Time limit prohibition.

     (a) Whenever an insurance company, in adjusting a claim for motor vehicle physical

damage, intends to specify the use of aftermarket parts, it shall notify the vehicle owner in writing.

Any auto body repair shop conducting business in the state of Rhode Island shall not use non-

original equipment manufactured (OEM) parts, also referred to as aftermarket parts, in the repair

of any person’s automobile, without that person giving the repairer his or her express written

consent.

     (b) No insurance company may require the use of aftermarket parts when negotiating

repairs with any repairer unless the repairer has written consent from the vehicle owner to install

aftermarket parts. The provisions of this section shall apply only to automobiles that are less than

forty-eight (48) months beyond the date of manufacture.

     (c) No insurance company may refuse the use of OEM parts when negotiating repairs with

any repairer for automobiles that are greater than forty-eight (48) months and less than seventy-two

(72) months from the date of manufacture, provided the repairer has written consent from the

vehicle owner to install OEM parts.

     (c)(d) For any automobile that is less than forty-eight (48) months beyond the date of

manufacture, the insurer and the auto body repair shop must provide a written notice to the vehicle

owner that: (i) He or she may require the insurer to pay for and the auto body shop to install

“original equipment manufacturer parts” or “OEM parts” in the repair of a motor vehicle; or (ii) He

or she may require the insurer to pay for and the auto body shop to install “non-original equipment

manufacturer parts” (non-“OEM parts”) in the repair of a motor vehicle. To comply with this

provision, written notice may be provided on the appraisal written on behalf of the insurer and the

estimate prepared by the auto body repair shop.

     (d)(e) When “OEM part(s)” are used in the repair of a motor vehicle, no insurance company

may require any repairer to use repair procedures that are not in compliance with the

recommendations of the original equipment manufacturer.

     (e)(f) This chapter shall not apply to the repair or replacement of motor vehicle glass

performed by licensed motor vehicle glass repair shops pursuant to chapter 38.5 of title 5.

     SECTION 2. This act shall take effect on October 1, 2024.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

     RELATING TO INSURANCE -- MOTOR VEHICLE REPLACEMENT PARTS

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     This act would prohibit insurance companies from refusing to use after market parts that

are greater than forty-eight (48) months and less than seventy-two (72) months from the date of

manufacture, provided the repairer has written consent from the owner of the vehicle.

     This act would take effect on October 1, 2024.

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LC004567

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