NCOIL Reconsidering Crash Parts Model Act, Special Hearing Slated

March 8, 2005

In a unanimous decision, legislators on the National Conference of Insurance Legislators’ Property-Casualty Insurance Committee voted to renew NCOIL’s consideration of a proposed Certified Aftermarket Crash Parts Model Act and to hold a special hearing on the matter during the July 7 through 10 NCOIL Summer Meeting in Newport, R.I. The action came when the committee met in Hilton Head, S.C. during the March 3 through 6 NCOIL Spring Meeting.

The proposed model law, which provoked intense controversy during its initial NCOIL consideration several years ago, would endorse certification of aftermarket crash parts by third-party organizations, such as the Certified Automotive Parts Association, and would require disclosure as to the use of certified aftermarket crash parts. After more than a year of discussion, in November 2002 the committee deferred further review of the draft model until the 2005 NCOIL Spring Meeting. Legislators at the time cited a need to address other issues.

Key points of contention debated during the earlier NCOIL discussions featured 1) the safety of certified aftermarket versus original equipment manufacturer crash parts; 2) who should be responsible for paying the difference between less expensive aftermarkets and OEMs; 3) how leasing arrangements should be treated; 4) the ability of states to enforce legislation based on the Certified Aftermarket Crash Parts Model Act; and 5) whether state laws would be appropriate vehicles for addressing the issue.

The current committee membership includes many legislators who were not present during the 2002 discussions and are interested in examining the major concerns surrounding certified aftermarket crash parts.

On March 4, numerous interested parties, including CAPA and car-company representatives, spoke to whether NCOIL should renew its discussion of the model law.

NCOIL is a bipartisan organization of state legislators interested in insurance legislation and regulation. Many legislators active in NCOIL either chair or are members of the committees responsible for insurance legislation in their respective state houses across the country.

A copy of the proposed Certified Aftermarket Crash Parts Model Act is available on the NCOIL Web site at www.ncoil.org.

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