HOUSE BILL NO. 181

INTRODUCED BY SLITER P

BY REQUEST OF THE STATE AUDITOR

A BILL FOR AN ACT ENTITLED: "AN ACT REQUIRING INSURERS TO OBTAIN A CONSUMER'S CONSENT TO THE USE OF MOTOR VEHICLE REPAIR PARTS THAT ARE NOT MADE BY THE MANUFACTURER; AND ALLOWING INSURERS TO REQUIRE A CONSUMER TO PAY THE ADDITIONAL COST OF PARTS MADE BY THE MANUFACTURER FOR THE REPAIR OF A MOTOR VEHICLE THAT IS OVER 5 MODEL YEARS OLD."

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:

NEW SECTION. Section 1. Short title. [Sections 1 through 5] may be cited as the "Motor Vehicle Repair Parts Consent Act".

NEW SECTION. Section 2. Purpose. The purpose of [sections 1 through 5] is to protect the consumer by establishing that an insurer may not insist on the use of parts other than those manufactured by the original manufacturer of the motor vehicle or by a licensed affiliate of the original manufacturer without the express written consent of the insured if the insured's motor vehicle is 5 model years old or newer.

NEW SECTION. Section 3. Definitions. As used in [sections 1 through 5], the following definitions apply:

(1) "Insurer" includes any insurance company or insurer, as defined in 33-1-201(6), and any person authorized to represent an insurer with respect to a claim.

(2) "Motor vehicle" means the same as in 69-12-101(9).

(3) "Original manufacturer's equipment part" means a replacement crash part that has been manufactured by the original manufacturer of the motor vehicle or by a licensed affiliate of the original manufacturer.

(4) "Replacement crash part" is a replacement for the nonmechanical sheet metal, fiberglass, or plastic parts that generally constitute the exterior of a motor vehicle, including inner and outer panels.

NEW SECTION. Section 4. Restrictions on insurer requirements. (1) An insurer in Montana may not directly or indirectly require the use of any crash repair part that is not an original manufacturer's equipment part in the repair of a motor vehicle unless:

(a) for a motor vehicle that is 5 model years old or newer, the consumer has given express written consent; or

(b) for a motor vehicle that is older than 5 model years, the consumer has signed a consent form that lists the specific nonoriginal manufacturer's equipment parts that are being consented to by the consumer.

(2) If a consumer does not consent to the use of any parts that are not original manufacturer's equipment parts in the repair of a motor vehicle that is older than 5 model years, the insurer may require the consumer to pay the cost difference between original manufacturer's equipment parts and parts recommended by the insurer.

NEW SECTION. Section 5. Violations -- penalties. A violation of [sections 1 through 4] is punishable under the provisions of 33-1-311 through 33-1-318.

NEW SECTION. Section 6. Severability. If a part of [this act] is invalid, all valid parts that are severable from the invalid part remain in effect. If a part of [this act] is invalid in one or more of its applications, the part remains in effect in all valid applications that are severable from the invalid applications.

NEW SECTION. Section 7. Codification instruction. [Sections 1 through 5] are intended to be codified as an integral part of Title 33, chapter 18, and the provisions of Title 33, chapter 18, apply to [sections 1 through 5].

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