Assembly Bill A1265

2021-2022 Legislative Session

Prohibits insurers from limiting payment on claims based on pricing caps and from recommending a particular repair facility

download bill text pdf

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Archive: Last Bill Status - In Assembly Committee

  • Introduced
    • In Committee Assembly
    • In Committee Senate
    • On Floor Calendar Assembly
    • On Floor Calendar Senate
    • Passed Assembly
    • Passed Senate
  • Delivered to Governor
  • Signed By Governor

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2021-A1265 (ACTIVE) - Details

Current Committee:
Assembly Insurance
Law Section:
Insurance Law
Laws Affected:
Amd §2610, Ins L
Versions Introduced in Other Legislative Sessions:
2009-2010: A316
2011-2012: A3961
2013-2014: A483
2015-2016: A1537
2017-2018: A414
2019-2020: A2911
2023-2024: A546
2025-2026: A937

2021-A1265 (ACTIVE) - Summary

Prohibits insurers from limiting payment on claims for damage to motor vehicles based on pricing caps for labor, parts, paint or repair materials; prohibits insurers from recommending a particular repair facility.

2021-A1265 (ACTIVE) - Bill Text download pdf 

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1265
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              January 8, 2021
                                ___________
 
 Introduced  by  M.  of  A.  MAGNARELLI  -- read once and referred to the
   Committee on Insurance
 
 AN ACT to amend the insurance law, in relation to collision  or  compre-
   hensive coverage on motor vehicles
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. Section 2610 of the insurance law is amended  by  adding  a
 new subsection (d) to read as follows:
   (D)(1)  NO  INSURER  IN  PROCESSING  ANY  SUCH  CLAIM, SHALL LIMIT THE
 PAYMENT OF SUCH CLAIM FOR DAMAGE TO A  MOTOR  VEHICLE  REPAIR  BASED  ON
 PRICING  CAPS  FOR LABOR, PARTS, PAINT OR REPAIR MATERIALS. ALL ELEMENTS
 OF SUCH A CLAIM FOR DAMAGES SHALL BE NEGOTIATED WITH THE INSURED, OR HIS
 OR HER DESIGNATED REPRESENTATIVE, BY A DULY LICENSED APPRAISER.
   (2) IF A RECOMMENDATION OR SUGGESTION OF AN AUTOMOTIVE REPAIR FACILITY
 IS MADE BY THE INSURER, AND ACCEPTED BY THE CLAIMANT, THE INSURER  SHALL
 CAUSE  THE  DAMAGED  VEHICLE TO BE RESTORED TO ITS CONDITION IMMEDIATELY
 PRIOR TO THE LOSS AT NO ADDITIONAL  COST  TO  THE  CLAIMANT  OTHER  THAN
 DEDUCTIONS  STATED IN THE POLICY. SHOULD THE INSURER FAIL TO RESTORE THE
 VEHICLE TO ITS CONDITION IMMEDIATELY PRIOR  TO  THE  LOSS,  THE  INSURER
 SHALL  AT  NO ADDITIONAL EXPENSE TO THE CLAIMANT CAUSE THE VEHICLE TO BE
 RESTORED TO ITS CONDITION IMMEDIATELY PRIOR TO THE LOSS AT A SHOP OF THE
 CLAIMANT'S CHOICE.
   § 2. This act shall take effect on the first of January next  succeed-
 ing  the date on which it shall have become a law and shall apply to all
 policies and contracts issued, renewed, modified, altered or amended  on
 or  after  such  effective  date.   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 to be
 made and completed on or before such effective date.

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD01766-01-1

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