California Legislative Committee Approves Replacement Parts Bill

The California Assembly Insurance Committee has approved a bill governing disclosure of competitive replacement auto parts. The National Association of Independent Insurers testified against the bill due to two provisions dealing with disclosure issues. Based in part on NAII testimony and continuing discussion, legislators are working to further improve the bill’s language. NAII’s goal is to amend the bill so that disclosure of the use of competitive replacement parts is given to consumers up front at the time of policy offer. Current language in the bill would require insurers to make disclosure notices twice – once at policy offer and once at the time of repair. NAII believes the two-step method is burdensome and would only confuse consumers rather than enlighten them.