OLR Bill Analysis
sHB 5152 (as amended by House “A”)*
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 (see CONSUMER NOTICE). The law prohibits an insurer, unless an insured agrees in writing, and an appraiser from requiring that a person use a specific repair shop.
The bill prohibits a motor vehicle repair shop that participates in an insurer's vehicle repair program (e. g. , is a preferred repair shop, see BACKGROUND) from repairing a vehicle under that program unless the person whose insured vehicle needs repairs acknowledges in writing that he or she is aware of the right to have the vehicle repaired at a shop he or she chooses.
*House Amendment “A” prohibits a repair shop participating in an insurer's vehicle repair program from making vehicle repairs under the program unless the insured person seeking the auto repairs acknowledges in writing that he or she is aware of the right to have the vehicle repaired at a shop he or she chooses.
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.
WRITTEN ACKNOWLEDGEMENT OF THE RIGHT TO CHOOSE A REPAIR SHOP
The bill prohibits a motor vehicle repair shop that participates in an insurer's vehicle repair program from repairing a vehicle under that program unless the claimant (i. e. , person whose insured vehicle needs repairs) acknowledges in writing that he or she is aware of the right to have the vehicle repaired at a shop he or she chooses.
The bill permits the acknowledgement to be (1) included in the repair authorization, which a customer signs before repairs are made, or in a separate document and (2) faxed or e-mailed. It requires the acknowledgement to read as follows: “I am aware of my right to choose the licensed repair shop where the damage to the motor vehicle will be repaired. ”
By law, a motor vehicle repairer must obtain a customer's written authorization before making repairs (CGS § 14-65f).
BACKGROUND
Preferred Repair Shops
Some automobile insurers enter into contracts with specific repair shops who agree to provide services to customers at a discounted price. A person may choose any shop for repairs, but the insurer might only guarantee repairs performed at a preferred shop.
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)).
COMMITTEE ACTION
Insurance and Real Estate Committee
Joint Favorable Substitute
Yea |
19 |
Nay |
0 |
(03/11/2008) |