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OLR Bill Analysis
AN ACT CONCERNING MOTOR VEHICLE REPAIRS.
This bill requires a notice in motor vehicle repair shops, on a repair appraisal or estimate, and on auto insurance identification cards informing customers of their right to choose the licensed repair shop that will fix their vehicles. The law prohibits an insurer, unless an insured agrees in writing, and an appraiser from requiring that a person use a specific repair shop.
EFFECTIVE DATE: January 1, 2009
CONSUMER NOTICE
Appraisals
The bill requires appraisals or estimates for automobile physical damage written on behalf of an insurer or a motor vehicle repair shop to include the following notice in at least 10-point boldface type:
NOTICE: YOU HAVE THE RIGHT TO CHOOSE THE LICENSED REPAIR SHOP WHERE THE DAMAGE TO YOUR MOTOR VEHICLE WILL BE REPAIRED.
Repair Shops
By law, repair shops must display signs showing labor and storage rates, informing customers of certain rights, and how to contact the Department of Motor Vehicle (DMV). The bill requires every motor vehicle repair shop also to prominently display a sign in the area where customers place work orders that is in boldface type and reads as follows:
NOTICE: THE CUSTOMER HAS THE RIGHT TO CHOOSE THE LICENSED REPAIR SHOP WHERE THE DAMAGE TO HIS OR HER MOTOR VEHICLE WILL BE REPAIRED.
Insurance Identification Cards
By law, insurers must issue automobile insurance identification cards annually, in duplicate, for each vehicle insured. For private passenger motor vehicle insurance policies delivered, issued, or renewed beginning January 1, 2009, insurers must include the following notice on the identification cards in boldface type:
NOTICE: YOU HAVE THE RIGHT TO CHOOSE THE LICENSED REPAIR SHOP WHERE THE DAMAGE TO YOUR MOTOR VEHICLE WILL BE REPAIRED.
BACKGROUND
Licensed Repair Shop
By law, no one may operate a motor vehicle repair shop without a DMV new car dealer's, used car dealer's, repairer's, or limited repairer's license (CGS § 14-52). A “motor vehicle repair shop” means a new car dealer, a used car dealer, a repairer, or a limited repairer (CGS § 14-65e).
“Repairer” includes any person, firm, or corporation qualified to conduct such business, having a suitable facility and adequate equipment, engaged in repairing, overhauling, adjusting, assembling, or disassembling any motor vehicle. It excludes a person engaged in tire repairs, upholstering, glazing, general blacksmithing, welding, and machine work on motor vehicle parts when a licensed repairer disassembles and reassembles the parts (CGS § 14-51(3)).
“Limited repairer” includes any qualified person, having a suitable place of business and adequate equipment, engaged in the business of minor repairs, including cooling, electrical, fuel, and exhaust system repairs and replacement; brake adjustments, relining, and repairs; wheel alignment and balancing; and shock absorber repairs and replacement. It excludes lubricating motor vehicles; adding or changing oil or other motor vehicle fluids; changing tires and tubes, including the balancing of wheels; or installing batteries or light bulbs, windshield wiper blades, or drive belts (CGS § 14-51(4)).
Related Bill
The Transportation Committee reported out SB 288, which requires a similar consumer notice on appraisals. It also:
1. prohibits an insurer from recommending, requesting, or requiring that a customer use a particular motor vehicle repairer,
2. permits an insurer or appraiser to give a customer a list of repair shops near his or her home,
3. requires insurers to pay the usual and customary labor rate (U&C) for vehicle repairs, and
4. makes it an unfair or deceptive insurance practice not to pay (a) U&C or (b) by means that makes money immediately available.
COMMITTEE ACTION
Insurance and Real Estate Committee
Joint Favorable Substitute
Yea |
19 |
Nay |
0 |
(03/11/2008) |