NAII Counsel to Address Use of Quality, Competitive Crash Parts

October 3, 2001

Robert Hurns, counsel for the National Association of Independent Insurers (NAII), will explain the current legislative and judicial climate regarding the use of high-quality, lower-cost competitive crash parts at the Association of Insurance Compliance Professionals’ Annual Meeting next week.

Specifically, Hurns will explain to a myriad of legislative and regulatory compliance professionals and actuaries on Monday why it is paramount that the courts and state legislatures encourage consumers’ choice of using the competitive auto replacement parts, instead of enhancing the monopoly of original equipment manufacturers (OEMs).

“Insurers are continuing the fight in the state legislatures to defeat proposals that restrict the use of alternative replacement parts, which would increase prices for parts and insurance, and harm both insurers and consumers,” Hurns said. “Also, recent studies show that costs of OEM parts are rising more quickly than costs of aftermarket parts, while at the same time demand is increasing for the aftermarket parts. We believe that competition will best serve consumers and companies and that legislators will understand this position.”

Hurns, who also is an advisor to the Certified Automotive Parts Association’s (CAPA) Board of Directors, will offer more insight into the billion-dollar verdict against State Farm in Avery vs. State Farm that cast aftermarket parts in the spot light for more than a year.

Hurns will also delve into other factors fueling the debate between Competitive and OEM parts, including the certification process that the alternative Parts must undergo, whether consumers and insurers have all the facts needed, and if consumers have to choose between cost and safety.

To answer these questions, Hurns will address the introduction of competition, subsequent legislative and regulatory debate in the states, the birth of CAPA–an objective certifying agency–the issue of safety, and the present state of competitive crash parts.

Other topics of interest to property/casualty insurers at the AICP annual meeting include: a state overview of workers’ compensation filings, credit scoring, disciplinary actions related to state filing, anti-fraud, commercial lines modernization, and personal injury protection medical issues. The annual meeting begins Sunday and ends Wednesday at the Minneapolis Hilton & Towers, 1001 Marquette Ave.

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