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Current Status Bill Number:View additional legislative information at the LPITS web site.819 Type of Legislation:General Bill GB Introducing Body:Senate Introduced Date:19990513 Primary Sponsor:Reese All Sponsors:Reese Drafted Document Number:l:\council\bills\ggs\22329cm99.doc Residing Body:Senate Current Committee:Banking and Insurance Committee 02 SBI Subject:Motor vehicle insurance, repair or service; insurer not to require use of after- market part History Body Date Action Description Com Leg Involved ______ ________ ______________________________________ _______ ____________ Senate 19990513 Introduced, read first time, 02 SBI referred to Committee Versions of This Bill
TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 38-77-400 SO AS TO PROVIDE CERTAIN DEFINITIONS RELATING TO AUTOMOBILE INSURERS, AUTOMOBILES, AND AUTOMOBILE PARTS, TO PROVIDE THAT AN AUTOMOBILE INSURER SHALL NOT REQUIRE THE USE OF AN AFTER-MARKET PART IN THE REPAIR OF A MOTOR VEHICLE UNDER CERTAIN CIRCUMSTANCES, TO PROVIDE THAT AN AUTOMOBILE INSURER THAT INTENDS TO REQUIRE OR SPECIFY THE USE OF AFTER-MARKET PARTS MUST DISCLOSE THIS INFORMATION TO ITS POLICYHOLDERS, TO PROVIDE THAT AN AUTOMOBILE INSURER MUST DISCLOSE TO A CLAIMANT THAT HIS ESTIMATE WAS PREPARED BASED ON THE USE OF AUTOMOBILE PARTS NOT MADE BY THE ORIGINAL MANUFACTURER AND THAT THESE PARTS MUST BE EQUAL TO THE ORIGINAL MANUFACTURER PARTS THEY ARE REPLACING, TO PROVIDE THAT AFTER-MARKET PARTS INSTALLED ON A MOTOR VEHICLE MUST BE IDENTIFIED ON THE ESTIMATE AND INVOICE FOR REPAIR, TO PROVIDE THAT AN AUTOMOBILE PART THAT IS NOT MADE BY THE ORIGINAL MANUFACTURER MUST HAVE THE LOGO OR NAME OF THE MANUFACTURER ON IT, AND TO PROVIDE A PENALTY.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. The 1976 Code is amended by adding:
"Section 38-77-400. (A) As used in this section:
(1) 'After-market part' means a part made by a nonoriginal manufacturer;
(2) 'Claimant' means a first-party claimant or a third-party claimant;
(3) 'Automobile insurer' includes a person authorized to represent an automobile insurer with respect to a claim and who acts within the scope of the person's authority;
(4) 'New motor vehicle' means a motor vehicle manufactured no more than three years before the date a claim is made for repair of a motor vehicle;
(5) 'Nonoriginal manufacturer' means a manufacturer other than the original manufacturer of a part; and
(6) 'Part' means a sheet metal or plastic part that generally is a component of the exterior of a motor vehicle which includes an inner or outer panel.
(B) An automobile insurer shall not require the use of an after-market part to repair a motor vehicle as a condition of payment under a policy covering damages to the motor vehicle.
(C) An automobile insurer shall not require additional payment for the use of new and original manufacturer equipment to repair a new motor vehicle.
(D) An automobile insurer shall not require the use of an after-market part in the repair of a motor vehicle that is not new as a condition of payment under a policy covering damages to the motor vehicle unless the after-market part is at least equal to the original part in terms of fit, quality, performance, and warranty. An insurer that specifies the use of after-market parts must include in an estimate for repairs, the costs of any modifications necessary to attain satisfactory fit, finish, and corrosion protection.
(E) An automobile insurer that writes motor vehicle insurance in this State and intends to require or specify the use of after-market parts must disclose to its policyholders in writing, either in the policy or on a sticker attached to the policy, the following information in at least ten-point type:
'IN THE REPAIR OF YOUR COVERED AUTOMOBILE 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. UNDER THE LAWS OF THIS STATE, IN THE REPAIR OF A VEHICLE LESS THAN THREE YEARS OLD, YOU HAVE A CHOICE TO USE ORIGINAL MANUFACTURER PARTS OR NONORIGINAL MANUFACTURER PARTS.'
(F) An automobile insurer must disclose to a claimant in writing, either on the estimate for repairs or on a separate document attached to the estimate, the following information in at least ten-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 MANUFACTURED BY SOMEONE OTHER THAN THE ORIGINAL MANUFACTURER MUST BE AT LEAST EQUAL IN TERMS OF FIT, QUALITY, PERFORMANCE, AND WARRANTY TO THE ORIGINAL MANUFACTURER PARTS THEY ARE REPLACING.'
(G) After-market parts installed on a motor vehicle must be clearly identified on the estimate and invoice for the repair.
(H) An automobile part that is not made by the original manufacturer must have affixed or inscribed on it the logo or name of the manufacturer and, when practicable, the logo or name of the manufacturer must be visible.
(I) A person who violates a provision contained in this section must be fined not more than one thousand dollars."
SECTION 2. This act takes effect upon approval by the Governor.
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