Petition

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2003

INSURER OWNED SHOPS

Legislation and Petition

NYS Assembly Bill 5487 / Senate Companion Bill 2785 introduced by Sen. DeFrancisco

S T A T E O F N E W Y O R K

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5487

2003-2004 Regular Sessions

I N A S S E M B L Y

March 3, 2003

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Introduced by M. of A. DESTITO -- read once and referred to the

Commit-

tee on Transportation

AN ACT to amend the vehicle and traffic law, in relation to insurer interests in certain motor vehicle repair shops

THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND

ASSEMBLY, DO ENACT AS FOLLOWS:

1 Section 1. The vehicle and traffic law is amended by adding a

new section 398-j to read as follows:

3S 398-J. INSURER INTEREST IN MOTOR VEHICLE REPAIR SHOPS PROHIBITED.

1. PROHIBITION. ON OR AFTER SEPTEMBER FIRST, TWO THOUSAND SIX, AN

INSURER MAY NOT HOLD NOR ACQUIRE ANY OWNERSHIP INTEREST IN A MOTOR

VEHICLE REPAIR SHOP.

2. DISCLOSURE REQUIREMENTS. (A) AN INSURER THAT, BEFORE

SEPTEMBER FIRST, TWO THOUSAND SIX, HAS AN OWNERSHIP INTEREST IN A MOTOR VEHICLE REPAIR SHOP MUST DISCLOSE TO EACH INSURED THAT THE INSURED HAS THE RIGHT TO USE ANY MOTOR VEHICLE REPAIR SHOP SELECTED BY THE INSURED. THE INSURER SHALL MAKE THE DISCLOSURE IN WRITING IN THE MANNER PRESCRIBED BY THE DEPARTMENT AND SHALL PROVIDE THE DISCLOSURE:

(1) AT THE TIME THE POLICY IS DELIVERED, ISSUED FOR DELIVERY, OR RENEWED; AND

(2) WHEN AN ACCIDENT CLAIM COVERED BY THE POLICY IS REPORTED TO

THE INSURER BY THE INSURED.

(B) AN INSURER MAY NOT OFFER AN INCENTIVE OR PROVIDE COMPENSATION

TO ANY PERSON TO REWARD THAT PERSON FOR REFERRING AN INSURED TO A

MOTOR VEHICLE REPAIR SHOP IN WHICH THE INSURER HAS AN OWNERSHIP INTEREST.

3. DIVESTMENT. ANY INSURER THAT HOLDS OR ACQUIRES ANY OWNERSHIP

INTEREST IN A MOTOR VEHICLE REPAIR SHOP PRIOR TO SEPTEMBER FIRST, TWO

THOUSAND SIX, SHALL DIVEST ITSELF OF ANY SUCH INTEREST ON OR BEFORE

SUCH DATE.

4. DEFINITIONS. FOR PURPOSES OF THIS SECTION, "INSURER" MEANS AN

INSURER AUTHORIZED AS SUCH TO PERFORM AN INSURANCE BUSINESS IN

THIS EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

{ } is old law to be omitted. LBD07684-02-3

A. 5487 2

STATE IN COMPLIANCE WITH THE INSURANCE LAW, BY REASON OF A

LICENSE ISSUED AND IN FORCE PURSUANT TO THE LAWS OF THIS STATE OR OF A

CORPORATE CHARTER GRANTED AND IN FORCE PURSUANT TO THE LAWS OF THIS STATE, BUT NOT INCLUDING ANY INSURER EXEMPTED FROM COMPLIANCE WITH THE REQUIREMENT THAT IT OBTAIN A LICENSE TO DO BUSINESS UNDER THE PROVISIONS OF THE INSURANCE LAW.

2. This act shall take effect on the one hundred twentieth day after it shall have become a law; provided, however, that effective immediately, the addition, amendment and/or repeal of any rule or regulation necessary for the implementation of this act on its effective date are authorized and directed to be made and completed on or before such effective date.

.SO DOC A 5487 *END* BTXT 2003

S.2785/A.5487 Petition

As a consumer and a voter, I do not want the Insurance Companies in New York

State to offer any policy that would restrict or limit my choice of Collision

Repair facilities. I fear if the insurance industry is able to offer this

option, eventually this type of policy will be the only option.

I also believe it is a CONFLICT OF INTEREST for ANY insurance company to have

ANY interest/ownership in a Collision Repair Shop.

Please work on my behalf to insure that this does not happen.

PLEASE SUPPORT S.2785/A.5487.

NAME ADDRESS

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Coalition For Fair Collision Repair

New York State Auto Collision Technician’s Association

Mail completed form to: NYSACT, Box 482, Centereach, N.Y. 11720

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Please call 631-941-9647 for additional information