GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1999

S	1 

SENATE BILL 973*

Short Title:  Regulate Used Motor Vehicle Parts.	(Public)

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Sponsors: Senators Weinstein; Cooper, Forrester, Hoyle, Odom, Rucho, and Wellons.

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Referred to:  Judiciary I.

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April 15, 1999

A BILL TO BE ENTITLED
AN ACT TO REGULATE THE USE OF AFTERMARKET PARTS IN THE REPAIR OF MOTOR VEHICLES.
The General Assembly of North Carolina enacts:
Section 1.  Article 3 of Chapter 58 of the General Statutes is amended by adding a new section to read:
"§ 58-3-182. Motor vehicle repairs; selection of replacement parts; disclosure to insureds.
(a)	No insurer shall require the use of an aftermarket part in the repair of a new motor vehicle as a condition of payment under a policy covering damages to the motor vehicle.  No insurer shall require additional payment for the use of new and original manufacturer equipment in repairing a new motor vehicle.
(b)	No insurer shall require the use of an aftermarket part in the repair of a motor vehicle that is not new as a condition of payment under a policy covering damages to the motor vehicle unless the aftermarket part is at least equal to the original part in terms of fit, quality, performance, and warranty.  Insurers specifying the use of aftermarket parts shall include in the estimate the costs of any modifications made necessary by the use of aftermarket parts, including modifications necessary to attain satisfactory fit, finish, and corrosion protection.
(c)	Every insurer that writes motor vehicle insurance in this State and that intends to require or specify the use of aftermarket parts must disclose to its policyholders in writing, either in the policy or on a sticker attached thereto, the following information in no smaller print than ten point type:
'IN THE REPAIR OF YOUR COVERED AUTO UNDER THE PHYSICAL DAMAGE COVERAGE PROVISIONS OF THIS POLICY, WE MAY REQUIRE OR SPECIFY THE USE OF AUTOMOBILE PARTS NOT MADE BY THE ORIGINAL MANUFACTURER. THESE PARTS ARE REQUIRED TO BE AT LEAST EQUAL IN TERMS OF FIT, QUALITY, PERFORMANCE, AND WARRANTY TO THE ORIGINAL MANUFACTURER PARTS THEY REPLACE.  UNDER THE LAWS OF THIS STATE, IN THE REPAIR OF A VEHICLE LESS THAN THREE YEARS OLD, YOU HAVE A CHOICE TO USE ORIGINAL MANUFACTURER PARTS OR NONORIGINAL MANUFACTURER PARTS.'
An insurer must disclose to a claimant in writing, either on the estimate or on a separate document attached to the estimate, the following information in no smaller print than ten point type:
'THIS ESTIMATE HAS BEEN PREPARED BASED ON THE USE OF AUTOMOBILE PARTS NOT MADE BY THE ORIGINAL MANUFACTURER.  PARTS USED IN THE REPAIR OF YOUR VEHICLE BY OTHER THAN THE ORIGINAL MANUFACTURER ARE REQUIRED TO BE AT LEAST EQUAL IN TERMS OF FIT, QUALITY, PERFORMANCE, AND WARRANTY TO THE ORIGINAL MANUFACTURER PARTS THEY ARE REPLACING.'
All aftermarket parts installed on a motor vehicle shall be clearly identified on the estimate and invoice for the repair.
An automobile part not made by the original manufacturer shall have affixed or inscribed on the part the logo or name of the manufacturer and, when practicable, the logo or name of the manufacturer shall be visible.
(d)	As used in this section:
(1)	'Aftermarket part' means a part made by a nonoriginal manufacturer.
(2)	'Claimant' means a first-party claimant or a third-party claimant.
(3)	'Insurer' includes any person authorized to represent the insurer with respect to a claim and who is acting within the scope of the person's authority.
(4)	'New motor vehicle' means a motor vehicle manufactured no longer than three years prior to the date the claim is made for repair of the motor vehicle.
(5)	'Nonoriginal manufacturer' means any manufacturer other than the original manufacturer of a part.
(6)	'Part' means a sheet metal or plastic part that generally is a component of the exterior of a motor vehicle, including an inner or outer panel.
(e)	Any person who violates this section is subject to the applicable provisions of G.S. 58-2-70 and G.S. 58-33-45."
Section 2.  This act becomes effective October 1, 1999, and applies to insurance policies made or renewed on or after that date.