Crash Parts Procurement Legislation Introduced in Maryland
March 12, 2013—Maryland delegate Mark Fisher (R-27B) recently introduced House Bill 1375 regarding replacement parts for damaged vehicles, according to the Automotive Service Association (ASA).
The proposed bill includes provisions that would prohibit adjusters, appraisers, insurance producers or employees of an insurer from requiring a repair facility to use a specific vendor or process for parts procurement.
The legislation would also require insurers to authorize repairs using genuine crash parts. This would prohibit insurers from requiring that repairs be made using aftermarket crash parts within five years after the vehicle is manufactured. However, claimants would be able to consent to the use of aftermarket crash parts in writing at the time of repair.
This Maryland legislation is one of the first attempts to address recent insurer initiatives regarding parts procurement, such as State Farm Insurance's electronic parts procurement effort through PartsTrader. The bill has been referred to the Maryland House Committee on Economic Matters.
To view the full text of the bill, visit the ASA's legislative website, TakingTheHill.com.