AUTO INSURERS REQUIRING USE OF AFTERMARKET PARTS

You asked if other states regulate an auto insurer's requirement that vehicle repairs be made with parts supplied by non-original equipment manufacturers (non-OEM) and if any require disclosure of the requirement.

At least 35 states have enacted statutes or regulations concerning an auto insurer's requirement that non-OEM aftermarket crash parts be used in vehicle repairs. The legal requirements vary by state, but most are a variation of a National Association of Insurance Commissioners (NAIC) model regulation on the subject (copy enclosed). Of the 35 states identified:

● 31, including Connecticut, require a disclosure statement with the repair estimate concerning the use of non-OEM parts;

● 20 require the manufacturer of the non-OEM aftermarket part to be indentified;

● 13 require the non-OEM parts to be of “like kind and quality” to OEM parts; and

● 6 require a customer's consent before using or requiring the use of non-OEM parts.

This report summarizes the NAIC model regulation and outlines the requirements in the 35 states (see Tables 1 and 2 below).

The National Conference of Insurance Legislators (NCOIL) is currently considering a proposed model act on the subject. The NCOIL model act is similar in many respects to the NAIC model regulation and may be viewed at http://www.ncoil.org/Docs/2006396c.pdf (copy enclosed).

Crash parts (1) are generally made of sheet metal or plastic and installed on the exterior of a motor vehicle (i.e., fenders, hoods, doors, trunk lids) and (2) exclude mechanical parts such as batteries, filters, shock absorbers, and spark plugs, according to a 2001 U.S. General Accounting Office (GAO) report (enclosed).

There are two types of crash parts: original equipment manufacturer and non-original equipment manufacturer. OEM parts are parts manufactured by or under licensure of the original auto manufacturer. Non-OEM parts, also called aftermarket or generic parts, are not made by the original manufacturer.

There are three main positions on aftermarket crash parts, according to the GAO. Collision-repair associations and repair shop owners generally believe that aftermarket parts are unsafe because they are inferior to OEM parts in fit and finish. Vehicle manufacturers generally believe that because the safety impact of non-OEM parts is uncertain, OEM parts should be used to ensure a vehicle performs to its original specifications. Lastly, insurance companies and manufacturers of aftermarket parts believe the aftermarket crash parts are a safe and economical alternative to OEM parts.

The National Highway Traffic Safety Administration (NHTSA) has authority under the Motor Vehicle Safety Act to set safety standards for motor vehicle equipment sold in interstate commerce, including aftermarket crash parts. It has not determined that non-OEM crash parts pose a significant safety concern and therefore has not developed standards for them, according to the GAO.

The GAO noted that NHTSA has a limited ability to detect safety-related defects on OEM and non-OEM parts. Even if it could, its ability to order recalls is hampered because some parts do not identify the product manufacturer. The GAO recommended that NHTSA work to strengthen its ability to identify problems, regardless of the type or source of unsafe parts, and order recalls.

The NAIC model regulation defines “aftermarket parts” as sheet metal or plastic parts that generally constitute the exterior of a motor vehicle, including inner and outer panels.

The model regulation requires that an aftermarket part manufactured after the effective date of the regulation carry sufficient permanent identification to identify its manufacturer. The identification must be accessible to the extent possible after installation.

It prohibits an insurer from requiring the use of aftermarket parts in a vehicle repair unless the aftermarket part is at least equal in kind and quality to the original part in terms of fit, quality, and performance. It also requires insurers specifying the use of aftermarket parts to consider the cost of any modifications that may become necessary when making the repair.

Under the model regulation, the repair estimate must clearly identify all aftermarket parts to be installed on the vehicle. The insurer must disclose to the claimant in writing, either on the repair estimate or on a separate document attached to it, the following notice in at least 10- 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 KIND AND QUALITY IN TERMS OF FIT, QUALITY AND PERFORMANCE TO THE ORIGINAL MANUFACTURER PARTS THEY ARE REPLACING.

Table 1 provides an overview of 35 states' requirements regarding the use of non-OEM aftermarket parts. Table 2 provides a detailed look at each of the 35 states' requirements.

*State*	*Identification of Parts*	*Repair Estimate Disclosure*	*Like Kind and Quality*	*Consent*	*Warranty*	*Other*
Alabama	X	X
Arkansas	X	X		X		Insurance policy disclosure
California		X
Colorado	X	X
Connecticut		X
Florida		X
Georgia	X	X
Idaho	X	X
Illinois	X	X	X
Indiana				X		Consumer has the choice to use non-OEM parts or not
Iowa	X	X	X			Insurance policy disclosure
Kentucky			X
Maryland					X
Massachusetts	X	X				Optional endorsement offered to cover OEM parts for eligible vehicles
Michigan		X
Minnesota						Insurers cannot require non-OEM parts, except for window glass
Mississippi	X	X
Missouri	X	X	X
Nebraska	X	X	X
Nevada		X
New Hampshire	X	X	X			Insurers cannot require non-OEM parts for certain vehicles
New Jersey	X	X	X		X
New York	X	X	X		X
North Carolina		X	X			Insurance policy disclosure; optional endorsement for OEM parts
Ohio	X	X	X
Oklahoma	X	X
Oregon		X	X		X
Rhode Island		X		X
South Dakota		X
Tennessee	X	X		X
Utah	X	X

*State*	*Law or Regulation Regarding Aftermarket Parts*
Florida	Fla. Stat. §§ 501.30 to 501.34 Repair Estimate Disclosure. When non-OEM aftermarket crash parts are used in preparing an estimate for repairs, the written estimate prepared by the insurer or the repair facility, or both, must clearly identify each such part. The following disclosure must be attached to, or included in, the estimate in at least 10-point type: THIS ESTIMATE HAS BEEN PREPARED BASED ON THE USE OF CRASH PARTS SUPPLIED BY A SOURCE OTHER THAN THE MANUFACTURER OF YOUR MOTOR VEHICLE. THE AFTERMARKET CRASH PARTS USED IN THE PREPARATION OF THIS ESTIMATE ARE WARRANTED BY THE MANUFACTURER OR DISTRIBUTOR OF SUCH PARTS RATHER THAN THE MANUFACTURER OF YOUR VEHICLE. Penalties. Any violation of this section by (1) an insurer is an unfair or deceptive insurance practice and (2) a repairer is an unfair or deceptive trade practice.
Georgia	Ga. Code Ann. § 33-6-5(13) Identification of Parts. Any aftermarket crash part manufactured or supplied for use in the state on or after January 1, 1990, must have affixed to or inscribed on it the manufacturer's logo, identification number, or name. Such information must be visible after installation whenever practicable. Repair Estimate Disclosure. When non-OEM aftermarket crash parts are used in preparing an estimate for repairs, the written estimate prepared by the insurance adjuster and repair facility must clearly identify each such part. The following disclosure must be attached to the estimate in at least 10-point type: THIS ESTIMATE HAS BEEN PREPARED BASED ON THE USE OF AFTERMARKET CRASH PARTS SUPPLIED BY A SOURCE OTHER THAN THE MANUFACTURER OF YOUR MOTOR VEHICLE. THE AFTERMARKET CRASH PARTS USED IN THE PREPARATION OF THIS ESTIMATE ARE WARRANTED BY THE MANUFACTURER OR DISTRIBUTOR OF SUCH PARTS RATHER THAN THE MANUFACTURER OF YOUR VEHICLE. Penalties. A violation is an unfair and deceptive act or practice.
Idaho	Idaho Code §§ 41-1328A to 41-1328D Identification of Parts. Any non-OEM aftermarket crash part supplied for use in the state must have affixed to or inscribed on it the manufacturer's logo or name. Such information must be visible after installation whenever practicable. Repair Estimate Disclosure. An insurer cannot specify the use of non-OEM aftermarket crash parts in the repair of an insured's motor vehicle, and a repair facility or installer cannot use non-OEM aftermarket crash parts to repair a vehicle, unless the consumer has been advised in writing. When non-OEM aftermarket crash parts are intended for use by an insurer, the written estimate must clearly identify each such part intended for use and the following disclosure must appear on or be attached to the insured's copy of the estimate in at least 10-point type: THIS ESTIMATE HAS BEEN PREPARED BASED ON THE USE OF CRASH PARTS SUPPLIED BY A SOURCE OTHER THAN THE MANUFACTURER OF YOUR MOTOR VEHICLE. WARRANTIES APPLICABLE TO THESE REPLACEMENT PARTS ARE PROVIDED BY THE MANUFACTURER OR DISTRIBUTOR OF THESE PARTS RATHER THAN THE MANUFACTURER OF YOUR VEHICLE. Penalty. It is an unfair claim settlement practice for an insurer to specify the use of non-OEM aftermarket crash parts in the repair of an insured's motor vehicle, or for a repair facility or installer to use non-OEM aftermarket crash parts to repair a vehicle, if the consumer has not been advised in writing.
Illinois	215 Ill. Comp. Stats. 5/155.29 Identification of Parts. Any non-OEM aftermarket crash part supplied for use in the state must have affixed to or inscribed on it the manufacturer's logo or name. Such information must be visible after installation whenever practicable. Repair Estimate Disclosure. An insurer cannot specify the use of non-OEM aftermarket crash parts in the repair of an insured's motor vehicle, and a repair facility or installer cannot use non-OEM aftermarket crash parts to repair a vehicle, unless the customer is advised of that fact in writing. When an insurer intends that non-OEM aftermarket crash parts will be used in the repair of a motor vehicle, the insurer must provide the customer a written estimate that clearly identifies each non-OEM aftermarket crash part and a disclosure settlement incorporated into or attached to the estimate that reads as follows: THIS ESTIMATE HAS BEEN PREPARED BASED ON THE USE OF CRASH PARTS SUPPLIED BY A SOURCE OTHER THAN THE MANUFACTURER OF YOUR MOTOR VEHICLE. WARRANTIES APPLICABLE TO THESE REPLACEMENT PARTS ARE PROVIDED BY THE MANUFACTURER OR DISTRIBUTOR OF THESE PARTS RATHER THAN THE MANUFACTURER OF YOUR VEHICLE. Ill. Admin. Reg. tit. 50 § 919.80(d)(5) Identification of Parts. All replacement crash parts subject to this section and manufactured after March 17, 1986, must carry sufficient permanent non-removable identification so as to identify its manufacturer. Such identification must be accessible to the extent possible after installation. Like Kind and Quality. An insurer is prohibited from requiring the use of a replacement crash part in the repair of an automobile unless the replacement crash part is at least equal in like kind and quality to the original part in terms of fit, quality, and performance. Insurers specifying the use of replacement crash parts must consider the cost of any modifications which may become necessary when making the repair.
Indiana	Ind. Code § 27-4-1.5-1 to 27-4-1.5-13 Consumer Choice Regarding Type of Parts. An insurer that is obligated to pay at least part of the cost of repairing the exterior of a motor vehicle under an insurance policy issued by the insurer may not direct a body shop to repair the motor vehicle until the insurer has presented the insured with a written notice that: 1. informs the insured that he or she has a right to approve the type of body parts to be used in the motor vehicle repair and 2. gives the insured an opportunity, in approving the type of body parts to be used in the repair of the motor vehicle, to select from among the following: a. new body parts manufactured by or for the manufacturer of the motor vehicle, b. new body parts that were not manufactured by or for the manufacturer of the motor vehicle, or c. used body parts. An insurer must give the insured an opportunity to indicate in writing the type of body part that the insured approves for use in the repair of the motor vehicle. This section applies only in the five years after the model year of the motor vehicle. Penalties. An insurer that does not give a consumer the required notice and opportunity to select the type of parts or that does not abide by a consumer's choice commits an unfair claim settlement practice.
Iowa	Iowa Code § 537B.4 Identification of Parts. An aftermarket crash part supplied for use in the state after January 1, 1991, must have affixed or inscribed upon the part the manufacturer's logo or name. Such information must be visible after installation whenever practicable. Repair Estimate Disclosure. A repair facility is prohibited from using aftermarket crash parts in the repair of a customer's motor vehicle, unless the proposed use of such parts is disclosed in the repair estimate given to the customer before repairing the vehicle. The estimate must be in writing and clearly identify each part proposed to be used which is an aftermarket crash part. The following information must appear in at least 10-point type on or attached to the estimate: THIS ESTIMATE HAS BEEN PREPARED BASED ON THE USE OF AFTERMARKET CRASH PARTS SUPPLIED BY A SOURCE OTHER THAN THE MANUFACTURER OF YOUR MOTOR VEHICLE. ANY WARRANTIES APPLICABLE TO THESE REPLACEMENT PARTS ARE PROVIDED BY THE MANUFACTURER OR DISTRIBUTOR OF THESE PARTS RATHER THAN THE MANUFACTURER OF YOUR VEHICLE. Penalties. A repair facility or manufacturer or distributor of aftermarket crash parts that fails to comply with the law commits a deceptive act or practice. 191 Iowa Admin. Code § 15.45 Like Kind and Quality. An insurer is prohibited from requiring the use of aftermarket crash parts in the repair of an automobile unless the aftermarket crash part is certified by a nationally recognized entity to be at least equal in kind and quality to the original equipment manufacturer part in terms of fit, quality, and performance or that the part complies with federal safety standards. Insurance. An automobile insurance policy delivered in the state that pays benefits based on the cost of aftermarket crash parts or that requires the insured to pay the difference between the cost of OEM parts and the cost of aftermarket crash parts must include the following notice: NOTICE--PAYMENT FOR AFTERMARKET CRASH PARTS PHYSICAL DAMAGE COVERAGE UNDER THIS POLICY INCLUDES PAYMENT FOR AFTERMARKET CRASH PARTS. IF YOU REPAIR THE VEHICLE USING MORE EXPENSIVE ORIGINAL EQUIPMENT MANUFACTURER (OEM) PARTS, YOU MAY PAY THE DIFFERENCE. ANY WARRANTIES APPLICABLE TO THESE REPLACEMENT PARTS ARE PROVIDED BY THE MANUFACTURER OR DISTRIBUTOR OF THESE PARTS RATHER THAN THE MANUFACTURER OF YOUR VEHICLE. Notice may be provided on a separate form or printed prominently on the policy's declaration page. The notice must be provided in conjunction with all new policies issued. It may be provided at the time of application, but must be provided no later than when the new policy is delivered. Insurers may inform applicants that the insurance division requires the notice in this rule.

*State*	*Law or Regulation Regarding Aftermarket Parts*
Michigan	Mich. Comp. Laws §§ 257.1361 to 257.1364 Repair Estimate Disclosure. If an insurer requests the use of non-OEM aftermarket crash parts in the repair of an insured's motor vehicle, a repair facility or installer may use non-OEM aftermarket crash parts only if the insured receives a written estimate of repairs that clearly identifies each non-OEM aftermarket crash part and contains or has attached to it in at least 10-point bold type the following information: THIS ESTIMATE HAS BEEN PREPARED BASED ON THE USE OF AFTERMARKET CRASH PARTS SUPPLIED BY A SOURCE OTHER THAN THE MANUFACTURER OF YOUR MOTOR VEHICLE. WARRANTIES THAT APPLY TO THESE REPLACEMENT PARTS ARE PROVIDED BY THE MANUFACTURER, DISTRIBUTOR, OR INSURER OF THESE PARTS.
Minnesota	Minn. Stat. § 72A.201 subd. 6(7) Insurance. Insurers are prohibited from requiring non-OEM parts, other than for window glass. Penalties. An insurer that requires as a condition of claim payment that repairs to a damaged vehicle be made with non-OEM parts, other than window glass, commits an unfair claim settlement practice.
Mississippi	Miss. Code Ann. §§ 63-27-1 Identification of Parts. Any non-OEM aftermarket crash part manufactured or supplied for use in the state on or after January 1, 1991, must have affixed to or inscribed on it the manufacturer's logo, identification number, or name. Such information must be visible after installation whenever practicable. Repair Estimate Disclosure. When non-OEM aftermarket crash parts are used in preparing an estimate for repairs, the written estimate prepared by the insurer and repair facility must clearly identify each such part and the following disclosure must be attached to the estimate in at least 10- point type: THIS ESTIMATE HAS BEEN PREPARED BASED ON THE USE OF AFTERMARKET CRASH PARTS SUPPLIED BY A SOURCE OTHER THAN THE MANUFACTURER OF YOUR MOTOR VEHICLE. THE AFTERMARKET CRASH PARTS USED IN THE PREPARATION OF THIS ESTIMATE ARE WARRANTED BY THE MANUFACTURER OR DISTRIBUTOR OF SUCH PARTS RATHER THAN THE MANUFACTURER OF YOUR VEHICLE.
Missouri	Mo. Rev. Stat. § 407.295 Identification of Parts. Any non-OEM aftermarket crash part supplied for use in the state after January 1, 1990, must have affixed to or inscribed on it the manufacturer's logo or name, which must be visible after installation whenever practicable. Repair Estimate Disclosure. An insurer is prohibited from specifying directly or indirectly the use of non-OEM aftermarket crash parts in the repair of an insured's motor vehicle without disclosing the intended use of such parts. When non-OEM aftermarket crash parts are intended for use by an insurer, the written estimate must clearly identify each such part and the following disclosure in at least 10-point type must appear on or be attached to the insured's copy of the estimate: THIS ESTIMATE HAS BEEN PREPARED BASED ON THE USE OF ONE OR MORE CRASH PARTS SUPPLIED BY A SOURCE OTHER THAN THE MANUFACTURER OF YOUR MOTOR VEHICLE. WARRANTIES APPLICABLE TO THESE REPLACEMENT PARTS ARE PROVIDED BY THE PARTS MANUFACTURER OR DISTRIBUTOR RATHER THAN BY THE MANUFACTURER OF YOUR VEHICLE. Penalties. Any violation of this law constitutes an unlawful practice and is subject to enforcement. Mo. Code Regs Ann. tit. 20 § 100-1.050(2)D.2. Repair Estimate Disclosure. An insurer must disclose to the claimant in writing, either on the estimate or in a separate document attached to the estimate, the following information in at least 10-point type: THIS ESTIMATE HAS BEEN PREPARED BASED ON THE USE OF AN AUTOMOBILE PART(S) NOT MADE BY THE ORIGINAL EQUIPMENT MANUFACTURER. PARTS USED IN THE REPAIR OF YOUR VEHICLE BY OTHER THAN THE ORIGINAL MANUFACTURER ARE REQUIRED TO BE AT LEAST EQUAL IN LIKE, KIND AND QUALITY IN TERMS OF FIT, QUALITY AND PERFORMANCE TO THE ORIGINAL MANUFACTURER PARTS THEY ARE REPLACING. ALL AFTERMARKET PARTS INSTALLED ON THE VEHICLE SHALL BE CLEARLY IDENTIFIED ON THE REPAIR ESTIMATE. Like Kind and Quality. An insurer is prohibited from requiring the use of after-market parts in the repair of an automobile unless the after-market part is at least equal in like kind and quality to the original part in terms of fit, quality, and performance. Insurers specifying the use of after-market parts must consider the cost of any modifications which may become necessary when making the repair. Identification of Parts. All after-market parts subject to this regulation and manufactured after October 31, 1991 must carry sufficient permanent identification so as to identify its manufacturer. This identification shall be accessible to the extent possible after installation.
Nebraska	Neb. Admin. R. tit. 210 ch. 45 Identification of Parts. All aftermarket parts subject to this regulation and manufactured after its effective date must carry sufficient permanent identification so as to identify its manufacturer. Such identification must be accessible to the extent possible after installation. Like Kind and Quality. An insurer is prohibited from requiring the use of aftermarket parts in the repair of an automobile unless the aftermarket part is at least equal in like, kind and quality to the original part in terms of fit, quality and performance. Insurers specifying the use of aftermarket parts must consider the cost of any modifications which may become necessary when making the repair. Repair Estimate Disclosure. All aftermarket parts installed on the vehicle must be clearly identified on the repair estimate. The insurer must disclose to the claimant in writing, either on the estimate or on a separate document attached to it, the following information in at least 10-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 LIKE, KIND AND QUALITY IN TERMS OF FIT, QUALITY AND PERFORMANCE TO THE ORIGINAL MANUFACTURER PARTS THEY ARE REPLACING. Penalties. Violations of the regulation are enforced through the Unfair Competition and Trade Practices Act.

*State*	*Law or Regulation Regarding Aftermarket Parts*
Nevada	Nev. Admin. Code § 686A.240 Repair Estimate Disclosure. If an insurer or its representative bases a repair estimate on the use of a non-OEM body part, the insurer or representative must disclose that fact to the claimant. The following disclosure must be printed on or attached to the repair estimate received by the claimant in at least 10-point type: THIS ESTIMATE IS BASED ON THE USE OF BODY PARTS FOR YOUR MOTOR VEHICLE WHICH WERE NOT MANUFACTURED FOR OR BY THE ORIGINAL MANUFACTURER OF THE MOTOR VEHICLE. ANY WARRANTIES PROVIDED FOR THESE BODY PARTS ARE PROVIDED BY THE MANUFACTURER OR DISTRIBUTOR OF THESE PARTS, NOT BY THE MANUFACTURER OF YOUR MOTOR VEHICLE. PLEASE CONTACT YOUR INSURER TO DETERMINE YOUR RIGHTS REGARDING THE USE OF SUCH BODY PARTS.
New Hampshire	N.H. Rev. Stat. Ann. §§ 407-D:1 to 407-D:5 Identification of Parts. All aftermarket parts manufactured after January 1, 1989 must carry sufficient permanent identification so as to identify its manufacturer and such identification must be accessible to the extent possible after installation. Like Kind and Quality. An insurer is prohibited from requiring the use of aftermarket parts in the repair of an automobile unless the aftermarket part is at least equal in like kind and quality to the original part in terms of fit, quality and performance. Insurers specifying the use of aftermarket parts must consider the cost of any modifications which may become necessary when making the repair. Repair Estimate Disclosure. All aftermarket parts installed on the vehicle must be clearly identified on the repair estimate. The insurer must disclose to the claimant in writing, either on the estimate or on a separate document attached to the estimate, the following in at least 10-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 LIKE KIND AND QUALITY IN TERMS OF FIT, QUALITY AND PERFORMANCE TO THE ORIGINAL MANUFACTURER PARTS THEY ARE REPLACING. Penalties. An insurer that violates the law commits an unfair insurance trade practice. A manufacturer that violates the law commits an unfair or deceptive act or practice. Bulletin INS No. 99-014-AB Like Kind and Quality. An insurer is prohibited from requesting or requiring the use of aftermarket parts unless it states in at least 10-point type in a separate paragraph on the repair estimate or authorization to repair or a separate writing to the vehicle's owner: THE AFTER-MARKET PART(S) BEING SPECIFIED FOR THE REPAIR OF YOUR VEHICLE ARE AT LEAST EQUAL IN KIND AND QUALITY TO THE ORIGINAL EQUIPMENT IN TERMS OF FIT, QUALITY AND PERFORMANCE. Insurance. An insurer is prohibited from requiring or specifying the use of after-market parts on automobiles that have (1) been placed in service within the immediately preceding two years and (2) 30,000 or fewer miles recorded on the odometer. An insurer is prohibited from requiring or specifying the use of after-market parts on leased vehicles if the lease provides that such parts will cause a diminution of the residual value of such vehicle. Penalties. Any coercion or steering is an unfair claims settlement practice and insurers failing to comply with the bulletin are subject to any and all penalty provisions provided by statute or regulation.
New Jersey	N.J. Admin Code §§ 11:2-17.3, 11:2-17.10, and 11:2-17.15 Identification of Parts. All aftermarket parts manufactured after October 17, 1988 used in an auto repair for which insurance proceeds provide payment must carry sufficient permanent identification so as to identify the manufacturer. Such identification must be accessible after installation to the extent possible. Warranty and Like Kind and Quality. An insurer is prohibited from requiring the use of aftermarket parts in the repair of an automobile unless the aftermarket part is warranted by the manufacturer in a reasonable manner as to duration and coverage and at least equal in like kind and quality to replacement parts available from the original manufacturer of the part in terms of fit, quality, and performance. Use of aftermarket parts which have been certified by an independent testing laboratory as being of like kind and quality to the original manufactured part are deemed to be in compliance with these requirements. Insurance. Insurers specifying the use of aftermarket parts must pay for any modifications which may become necessary in making the repair. Repair Estimate Disclosure. The insurer must clearly identify on the estimate of such repair all aftermarket parts installed on the vehicle. When an insurer specifies the use of aftermarket parts, the insurer must disclose to the claimant, in writing, either on the estimate or on a separate document attached to it, the following information in at least 10-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 LIKE KIND AND QUALITY IN TERMS OF FIT, QUALITY AND PERFORMANCE TO REPLACEMENT PARTS AVAILABLE FROM THE ORIGINAL MANUFACTURER. Penalties. A violation of the regulation is an unfair claims settlement practice.
New York	N.Y. Comp. Codes R. & Regs. tit. 11 § 216.7 (Reg. 64) Repair Estimate Disclosure, Insurance, Warranty, and Like Kind and Quality. If the insurer's repair estimate is based upon the use of any non-OEM crash part: 1. the estimate must specify the non-OEM or non-OEM supplier; 2. the insurer must not, without consent of the insured or the insured's designated representative, specify non-OEM crash parts from more than three different suppliers for any one repair; 3. the crash part must equal or exceed the comparable OEM crash part in terms of fit, form, finish, quality, and performance; 4. the crash part must be warranted by the non-OEM at least to the extent and duration as the comparable OEM crash part; 5. the insurer must specify only certified crash parts, in regard to any part that has been duly certified by a qualified certifying entity acceptable to the insurance superintendent; 6. if the crash part has not been certified by a qualified certifying entity acceptable to the superintendent, the non-OEM must issue a written warranty, for at least the period of the insured's ownership of the vehicle, that the crash part equals or exceeds the comparable OEM crash part in terms of fit, form, finish, quality, and performance; and 7. the insurer must have the damaged vehicle restored to its pre-loss condition consistent with the non-OEM warranty, at no additional cost to the insured and within a reasonable time, if the non-OEM fails to honor its warranty required above. In determining whether a certifying entity is qualified and acceptable, the superintendent must consider the extent to which the entity: 1. has adopted written standards containing conditions to be fulfilled by a manufacturer of crash parts; 2. tests, or contracts with an independent testing organization that tests, crash parts using suitable equipment and techniques; 3. administers its certification program in a nondiscriminatory manner regarding any manufacturer or supplier of non-OEM crash parts; 4. provides a system to determine that certified non-OEM crash parts continue to conform with prescribed standards and, failing to so conform, to decertify and advise crash part users of withdrawals of certification for any such part; 5. provides mechanisms for quickly receiving inquiries and promptly resolving disputes that arise under the program in regard to consumers, insurers, or repair shops; 6. provides a means of identifying each certified non-OEM crash part and system of security that guards against misuse of the identification; 7. provides updated lists of certified non-OEM crash parts on at least a quarterly basis; and 8. provides the superintendent with an annual report, and such other reports as the superintendent may require, highlighting any significant developments, problems, or changes relating to certification procedures or requirements
North Carolina	N.C. Gen. Stat. §§ 58-36-95 and 58-36-41 Repair Estimate Disclosure. An insurer must disclose to a claimant in writing, either on the repair estimate or on a separate document attached to it, the following in at least 10-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 MADE BY OTHER THAN THE ORIGINAL MANUFACTURER ARE REQUIRED TO BE AT LEAST EQUIVALENT IN TERMS OF FIT, QUALITY, PERFORMANCE, AND WARRANTY TO THE ORIGINAL MANUFACTURER PARTS THEY ARE REPLACING. Penalties. A violation of the disclosure requirement is subject to a civil penalty of up to $2,000. Optional Endorsement Required. The North Carolina Rate Bureau must develop an optional policy endorsement for the insurance commissioner's approval that permits policyholders to elect coverage requiring the exclusive use of OEM crash parts. N.C. Admin. Code tit. 11 r. 4.0425 to 4.0427 Like Kind and Quality. An insurer is prohibited from requiring the use of an aftermarket part in the repair of a 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 must include in the estimate the costs of any modifications made necessary by the use of aftermarket parts. Insurance. Every insurer that writes auto insurance in the 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 to it, the following information in at least 10-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. Repair Estimate and Invoice Disclosure. All aftermarket parts installed on a motor vehicle must be identified on the estimate and invoice for such repair.
Ohio	Ohio Rev. Code Ann. § 1345.81 An insurer that provides a repair estimate based in whole or part upon the use of a non-OEM aftermarket crash part and a repair facility or installer who intends to use a non-OEM aftermarket crash part must comply with the following provisions, as applicable: Repair Estimate Disclosure. If the person requesting the repair chooses to receive a written estimate, the insurer, repair facility, or installer providing the estimate must (1) identify, clearly in the written estimate, each non-OEM aftermarket crash part and (2) contain the following notice in at least 10-point type: THIS ESTIMATE HAS BEEN PREPARED BASED UPON THE USE OF ONE OR MORE AFTERMARKET CRASH PARTS SUPPLIED BY A SOURCE OTHER THAN THE MANUFACTURER OF YOUR MOTOR VEHICLE. WARRANTIES APPLICABLE TO THESE AFTERMARKET CRASH PARTS ARE PROVIDED BY THE PARTS MANUFACTURER OR DISTRIBUTOR RATHER THAN BY YOUR OWN MOTOR VEHICLE MANUFACTURER. The person requesting the repair must acknowledge receiving and approving the written estimate by signing at the bottom of the written estimate. If the person requesting the repair chooses to receive an oral estimate or no estimate at all, the insurer, repair facility, or installer providing the estimate or seeking the person's approval for repair work to begin must (1) give or read to the person the notice shown above when the oral estimate is given or the person requesting the repair gives his approval for the work to begin and (2) provide a copy of the notice with the final invoice for the repair. Identification of Parts. A non-OEM aftermarket crash part manufactured after the effective date of the law must have permanently affixed to or inscribed on it, before installing the part, the manufacturer's business name or logo. Whenever practical, the information must be accessible after installation. Like Kind and Quality Required for Salvage Part. An insurer, repair facility, or installer may use a salvage motor vehicle part in the repair of a motor vehicle, if it is of a like kind and quality to the part in need of repair and is removed from a salvage motor vehicle by a licensed salvage motor vehicle dealer. Penalties. A violation of the law in connection with a consumer transaction is an unfair and deceptive act or practice.
Oklahoma	Okla. Stat. tit. 15 §§ 953 to 956 Identification of Parts. A non-OEM aftermarket crash part supplied for use in the state after September 1, 1991 must have affixed to or inscribed on it the manufacturer's logo or name, which must be visible after installation whenever practicable. Repair Estimate Disclosure. An insurer is prohibited from specifying the use of non-OEM aftermarket crash parts in the repair of an insured's motor vehicle, and a repair facility or installer is prohibited from using non-OEM aftermarket crash parts to repair a vehicle, unless the consumer is advised in writing. When an insurer intends to specify non-OEM aftermarket crash parts, the (1) written repair estimate must clearly identify each such part and (2) following disclosure must appear on or be attached to the insured's copy of the estimate in at least 10-point type: THIS ESTIMATE HAS BEEN PREPARED BASED ON THE USE OF CRASH PARTS SUPPLIED BY A SOURCE OTHER THAN THE MANUFACTURER OF YOUR MOTOR VEHICLE. WARRANTIES APPLICABLE TO THESE REPLACEMENT PARTS ARE PROVIDED BY THE MANUFACTURER OR DISTRIBUTOR OF THESE PARTS RATHER THAN THE MANUFACTURER OF YOUR VEHICLE. Penalties. Any violation of the law is subject to and enforced through the unfair trade practices provisions.
Oregon	Or. Rev. Stat. §§ 746.287 to 746.292 Like Kind and Quality. Without the consent of the vehicle's owner, an insurer may not require, directly or indirectly, that a repair shop supply or install an aftermarket crash part, and a motor vehicle body and frame shop may not supply or install an aftermarket crash part, unless the part has been certified by an independent test facility to be at least equivalent to the part being replaced. An aftermarket crash part is at least equivalent to the part being replaced if it is the same kind of part and is at least the same quality with respect to fit, finish, function, and corrosion resistance. Warranty. An insurer offering an auto insurance policy that provides coverage for vehicle repairs must provide an insured a warranty for non-OEM crash parts when the insured requests one. Repair Estimate Disclosure. If non-OEM crash parts are to be used, the repair estimate must include a statement that says: THIS ESTIMATE HAS BEEN PREPARED BASED ON THE USE OF A MOTOR VEHICLE CRASH PART NOT MADE BY THE ORIGINAL EQUIPMENT MANUFACTURER. THE USE OF A MOTOR VEHICLE CRASH PART NOT MADE BY THE ORIGINAL EQUIPMENT MANUFACTURER MAY INVALIDATE ANY REMAINING WARRANTIES OF THE ORIGINAL EQUIPMENT MANUFACTURER ON THAT MOTOR VEHICLE PART. THE PERSON WHO PREPARED THIS ESTIMATE WILL PROVIDE A COPY OF THE PART WARRANTY FOR CRASH PARTS NOT MADE BY THE ORIGINAL EQUIPMENT MANUFACTURER FOR COMPARISON PURPOSES. Or. Admin. R. §§ 836-80-210 and 836-80-240 Repair Estimate Disclosure. If non-OEM crash parts are to be supplied or installed, the repair estimate must identify each such part in a clearly understandable manner. The insurer or body shop must give a copy of the written estimate to the claimant.
Rhode Island	R.I. Gen. Laws §§ 27-10.2-1 to 27-10.2-3 Insurance, Consent, and Disclosure. Whenever an insurance company, in adjusting a first party claim for motor vehicle physical damage, intends to specify the use of aftermarket parts, it must notify the insured in writing. An auto body repair shop conducting business in the state of Rhode Island must not use non-OEM aftermarket parts in a repair without the vehicle owner's express written consent. No insurance company may require the use of aftermarket parts when negotiating repairs with any repairer unless the repairer has written consent from the vehicle owner to install aftermarket parts. The provisions of this section apply only to automobiles which are less than 30 months beyond the date of manufacture. For any automobile which is less than 30 months beyond the date of manufacture, the insurer and the auto body repair shop must provide a written notice to the vehicle owner that he or she may require the insurer to pay for and the auto body shop to install (1) OEM parts or (2) non-OEM parts. To comply with this provision, written notice may be provided on the insurer's written appraisal and the repair shop's estimate.

*State*	*Law or Regulation Regarding Aftermarket Parts*
South Dakota	S.D. Codified Laws Ann. §§ 58-33-70 to 58-33-71 Repair Estimate Disclosure. No insurer may specify the use of non-OEM aftermarket crash parts, nor may a repair facility or installer use non-OEM aftermarket parts to repair a vehicle, unless the consumer is advised in writing. When non-OEM aftermarket crash parts are intended for use by an insurer, the written estimate must clearly identify each such part and the following disclosure must appear on or be attached to the insured's copy of the estimate in at least 10-point type: THIS ESTIMATE HAS BEEN PREPARED BASED ON THE USE OF CRASH PARTS SUPPLIED BY A SOURCE OTHER THAN THE MANUFACTURER OF YOUR MOTOR VEHICLE. WARRANTIES APPLICABLE TO THESE REPLACEMENT PARTS ARE PROVIDED BY THE MANUFACTURER OR DISTRIBUTOR OF THESE PARTS RATHER THAN THE MANUFACTURER OF YOUR VEHICLE. Penalties. Any violation of the law is an unfair trade practice.
Tennessee	Tenn. Comp. R. & Regs. 0780-1-59 Identification of Parts. A non-OEM aftermarket crash part specified by an insurer for a vehicle repair that is supplied for use in the state after the effective date of the regulation must have affixed to or inscribed on it the manufacturer's logo or name, which must be visible after installation whenever practicable. Repair Estimate Disclosure. An insurer is prohibited from specifying, directly or indirectly, the use of non-OEM aftermarket crash parts in a vehicle repair, unless the insurer discloses the intended use of such parts to the claimant. When non-OEM aftermarket crash parts are intended for use by an insurer, the written estimate must clearly identify each such part and the following disclosure must appear on or be attached to the claimant's copy of the estimate in at least 10-point type: THIS ESTIMATE HAS BEEN PREPARED BASED ON THE USE OF ONE OR MORE CRASH PARTS SUPPLIED BY A SOURCE OTHER THAN THE MANUFACTURER OF YOUR MOTOR VEHICLE. WARRANTIES APPLICABLE TO THESE REPLACEMENT PARTS ARE PROVIDED BY THE PARTS MANUFACTURER OR DISTRIBUTOR RATHER THAN BY THE MANUFACTURER OF YOUR VEHICLE. Consent. Non-OEM aftermarket crash parts cannot be used on current year model or immediate prior year model motor vehicles without the claimant's express permission. Penalties. A violation of the regulation is an unfair claim settlement practice.
Utah	Utah Code Ann. § 31A-22-316 to 31A-22-319 Identification of Parts. A non-OEM aftermarket crash part supplied for use in the state must have the manufacturer's logo or name affixed or inscribed on the part. The logo or name must be visible after installation whenever practicable. Repair Estimate Disclosure. Unless the insured is given notice in writing, an insurer may not specify the use of non-OEM aftermarket crash parts in the repair of an insured's motor vehicle. The notice must identify non-OEM parts as not made for or by the vehicle manufacturer. Unless the consumer is given notice in writing before installation, a repair facility or installer may not use non-OEM aftermarket parts to repair a vehicle. When non-OEM aftermarket crash parts are intended for use by an insurer, the written estimate must clearly identify each non-OEM aftermarket crash part and the following notice must appear on or be attached to the insured's copy of the estimate in at least 10-point type: THIS ESTIMATE HAS BEEN PREPARED BASED ON THE USE OF CRASH PARTS SUPPLIED BY A SOURCE OTHER THAN THE MANUFACTURER OF YOUR MOTOR VEHICLE. WARRANTIES APPLICABLE TO THESE REPLACEMENT PARTS ARE PROVIDED BY THE MANUFACTURER OR DISTRIBUTOR OF THESE PARTS RATHER THAN THE MANUFACTURER OF YOUR VEHICLE.
Virginia	Va. Code Ann. § 38.2-510C Repair Estimate Disclosure. An insurer is prohibited from preparing or using a repair estimate based on the use of an aftermarket part unless the insurer discloses to the following to the claimant in writing either on the estimate or in a separate document attached to it: 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 LIKE KIND AND QUALITY IN TERMS OF FIT, QUALITY AND PERFORMANCE TO THE ORIGINAL MANUFACTURER PARTS THEY ARE REPLACING.
West Virginia	W.Va. Code §§ 46A-6B-1 to 46A-6B-5 Consent and Like Kind and Quality. For a motor vehicle requiring repair by a motor vehicle body shop in the year of its manufacture or in the following two years, body shops must use OEM crash parts sufficient to maintain the manufacturer's warranty for fit, finish, structural integrity, corrosion resistance, dent resistance, and crash performance, unless the motor vehicle owner consents in writing at the time of the repair to the use of non-OEM aftermarket crash parts. An insurer is prohibited, during the year the motor vehicle was manufactured and the following two years, from requiring the use of non-OEM aftermarket crash parts when negotiating vehicle repairs with a repairer, unless the vehicle owner consents in writing at the time of the repair to the use of non-OEM aftermarket crash parts. Identification of Parts and Repair Estimate Disclosure. Before beginning repair work using crash parts, a motor vehicle body shop must (1) provide to the vehicle owner a list of the replacement crash parts that the body shop intends to use, (2) specify whether the replacement parts are OEM crash parts, and (3) identify the manufacturer of the parts if they are non-OEM aftermarket crash parts. If the replacement crash parts to be used are non-OEM aftermarket crash parts, the body shop must include with its estimate the following written statement in a clear and conspicuous manner in 10-point type: THIS ESTIMATE HAS BEEN PREPARED BASED ON THE USE OF AFTERMARKET CRASH PARTS THAT ARE NOT MANUFACTURED BY THE ORIGINAL MANUFACTURER OF THE VEHICLE OR BY A MANUFACTURER AUTHORIZED BY THE ORIGINAL MANUFACTURER TO USE ITS NAME OR TRADEMARK. THE USE OF AN AFTERMARKET CRASH PART MAY INVALIDATE ANY REMAINING WARRANTIES OF THE ORIGINAL MANUFACTURER ON THAT CRASH PART. Penalties. A violation of the law is an unfair or deceptive act or practice. The law specifies that it does not (1) prohibit a person from filing an action for damages against a body shop or (2) require a person first to exhaust any administrative remedy he or she may have.


November 5, 2009		2009-R-0398
AUTO INSURERS REQUIRING USE OF AFTERMARKET PARTS

By: Janet L. Kaminski Leduc, Senior Legislative Attorney

*State*	*Law or Regulation Regarding Aftermarket Parts*
Alabama	Ala Code §§ 32-17A-1 to 32-17A-3 Identification of Parts. Any non-OEM aftermarket crash part manufactured or supplied for use in the state on or after January 1, 1990 must have affixed to or inscribed on it the manufacturer's logo, identification number, or name. Such information must be visible after installation whenever practicable. Repair Estimate Disclosure. When non-OEM aftermarket crash parts are used in preparing an estimate for repairs, the written estimate prepared by the insurer and repair facility must clearly identify each such part. A disclosure document attached to the estimate must contain the following information in at least 10-point type: THIS ESTIMATE HAS BEEN PREPARED BASED ON THE USE OF AFTERMARKET CRASH PARTS SUPPLIED BY A SOURCE OTHER THAN THE MANUFACTURER OF YOUR MOTOR VEHICLE. THE AFTERMARKET CRASH PARTS USED IN THE PREPARATION OF THIS ESTIMATE ARE WARRANTED BY THE MANUFACTURER OR DISTRIBUTOR OF SUCH PARTS RATHER THAN THE MANUFACTURER OF YOUR VEHICLE.
Arkansas	Ark. Code Ann. §§ 4-90-302 to 4-90-307 Identification of Parts. Any non-OEM aftermarket crash part manufactured or supplied for use in the state on or after January 1, 1992 must have affixed to or inscribed on it the manufacturer's logo, identification number, or name. Such information must be visible after installation whenever practicable. Insurance. Every insurer that writes motor vehicle insurance and intends to require the use of aftermarket parts must disclose to its policyholders in writing, either in the policy or on an attached sticker, the following information in at least 10-point type: IN THE REPAIR OF YOUR COVERED MOTOR VEHICLE UNDER THE PHYSICAL DAMAGE COVERAGE PROVISIONS OF THIS POLICY, WE MAY REQUIRE OR SPECIFY THE USE OF MOTOR VEHICLE 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. Repair Estimate Disclosure. When non-OEM aftermarket crash parts are used in preparing an estimate for repairs, the written estimate prepared by the insurer and repair facility must clearly identify each such part. A disclosure document attached to the estimate must contain the following information in at least 10-point type: THIS ESTIMATE HAS BEEN PREPARED BASED ON THE USE OF AFTERMARKET CRASH PARTS SUPPLIED BY A SOURCE OTHER THAN THE MANUFACTURER OF YOUR MOTOR VEHICLE. THE AFTERMARKET CRASH PARTS USED IN THE PREPARATION OF THIS ESTIMATE ARE WARRANTED BY THE MANUFACTURER OR DISTRIBUTOR OF SUCH PARTS RATHER THAN THE MANUFACTURER OF YOUR VEHICLE. Consent. Whenever repairs are made involving replacement crash parts and the vehicle is still under the manufacturer's original warranty, only OEM replacement crash parts may be used by the repair facility unless the owner gives or has given written consent otherwise. Penalties. Any person who violates any provision of this subchapter and is convicted is guilty of a violation and subject to a fine of up to $100.
California	Cal. Bus. & Prof. Code §§ 9875 to 9875.2 Repair Estimate Disclosure. No insurer may require the use of non-OEM aftermarket crash parts in the repair of an insured's motor vehicle, unless the consumer is advised in a written estimate of the use of such parts before repairs are made. When non-OEM aftermarket crash parts are intended for use by an insurer the written estimate must clearly identify each such part with the name of its manufacturer or distributor and the following disclosure must be attached to the insured's copy of the estimate in at least 10-point type: THIS ESTIMATE HAS BEEN PREPARED BASED ON THE USE OF CRASH PARTS SUPPLIED BY A SOURCE OTHER THAN THE MANUFACTURER OF YOUR MOTOR VEHICLE. ANY WARRANTIES APPLICABLE TO THESE REPLACEMENT PARTS ARE PROVIDED BY THE MANUFACTURER OR DISTRIBUTOR OF THE PARTS, RATHER THAN BY THE ORIGINAL MANUFACTURER OF YOUR VEHICLE. Penalties. A violation of the law is an unfair or deceptive act.
Colorado	Colo. Rev. Stat. §§ 10-3-1301 to 10-3-1307 Identification of Parts. Any non-OEM replacement crash part supplied for use must have the name or trademark of the manufacturer affixed to or inscribed on it. The name or trademark must be placed so as to be visible after installation of the part whenever practicable. Repair Estimate Disclosure. No insurer shall specify the use of non-OEM replacement crash parts in the repair of an insured's motor vehicle without disclosing the intended use of such parts to the insured. When non-OEM replacement crash parts are intended for use by an insurer, the written estimate shall clearly identify each such part as being a non-OEM replacement crash part, and a disclosure document containing the following information in at least 10-point type must appear on or be attached to the insured's copy of the estimate: THIS ESTIMATE HAS BEEN PREPARED BASED ON THE USE OF ONE OR MORE CRASH PARTS SUPPLIED BY A SOURCE OTHER THAN THE MANUFACTURER OF YOUR MOTOR VEHICLE. WARRANTIES, IF ANY, APPLICABLE TO THESE REPLACEMENT CRASH PARTS ARE PROVIDED BY THE PARTS MANUFACTURER OR DISTRIBUTOR RATHER THAN BY THE MANUFACTURER OF YOUR VEHICLE. Penalty. A violation of or noncompliance with any provision of this part is an unfair method of competition and unfair or deceptive act or practice in the business of insurance. Liability. Nothing in this part affects a party's rights, defenses, or liabilities otherwise available at law regarding damages or injuries arising from the use of replacement crash parts.

*State*	*Law or Regulation Regarding Aftermarket Parts*
Kentucky	806 Ky. Admin. Regs. § 12:095, Section 8 (4) Like Kind and Quality. An insurer is prohibited from requiring the use of replacement crash parts in the repair of a motor vehicle unless the replacement crash part is at least equal in kind and quality to the part to be replaced in terms of fit, quality, and performance. Insurers specifying the use of replacement crash parts must consider the cost of any modifications which may be necessary when making the repair.
Maryland	Md. Ann. Code Ins. § 27-906 Warranty. An insurer that issues or delivers in the state a motor vehicle liability insurance policy that provides coverage for the repair of physical damage to the vehicle must provide, on request of the insured, a copy of the warranty for aftermarket crash parts, if available.
Massachusetts	Mass. Ann. Laws ch. 90 § 34R Repair Estimate Disclosure. Whenever repairs are necessary to the visible exterior sheet metal or plastic parts of a damaged motor vehicle, any insurer or repairer preparing a written estimate of the cost of such repairs must clearly identify in such estimate each major replacement crash part to be used which is not manufactured or supplied by the original manufacturer of the motor vehicle. Attached to any such estimate identifying non-OEM parts must be the following notice, printed in no less than 10-point type: THE REPAIR ESTIMATE IS BASED IN PART ON THE USE OF REPLACEMENT PARTS WHICH ARE NOT MADE BY THE ORIGINAL MANUFACTURER OF THE DAMAGED PARTS IN YOUR VEHICLE. WARRANTIES, IF ANY, APPLICABLE TO THESE REPLACEMENT PARTS ARE PROVIDED BY THEIR MANUFACTURER OR SUPPLIER RATHER THAN THE MANUFACTURER OF YOUR VEHICLE. The insurer or repairer, as the case may be, must give a copy of the estimate and notice to the person for whom the estimate is prepared. Identification of Parts. The repairer must, on the customer's repair order or repair certification form, identify by name the manufacturer or supplier of any non-OEM crash parts used in making the actual repairs. Penalties. Failure to comply with the law constitutes an unfair or deceptive act or practice. Bulletin 00-15 (Revised) Optional Endorsement Required. Effective January 1, 2001, all insurers licensed to sell private passenger automobile insurance must sell an optional endorsement that provides for the use of new parts manufactured by or under licensure of the original equipment manufacturer when replacing crash parts, when such new parts are not otherwise required. Eligible autos include private passenger vehicles insured for collision or limited collision comprehensive coverage and which are up to 10 model years old. Rates charged for the endorsement must be calculated according to a formula approved by the Division of Insurance. The optional endorsement shall not be sold for vehicles for which no aftermarket crash parts are available, nor for any vehicle for which new OEM crash parts are not available.