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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
DISCLOSE TO CONSUMERS THAT FOR
INSURANCE PURPOSES, CONSUMERS MUST HAVE CONSENTED 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
6 5] may be cited as the "Motor Vehicle Repair Parts
Disclosure and Consent Act".
NEW SECTION. Section 2. Purpose. The purpose of [sections 1 through
6 5] is to protect the consumer by requiring
insurers to inform the consumer that the consumer must have consented to the use of after market or recycled parts in the
repair of a motor vehicle before 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
6 5], the following definitions apply: (1) "After market part" means a part for an automotive vehicle made by a company other than the original manufacturer
or a licensed affiliate. (2)(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. (3)(2) "Motor vehicle" means the same as in 69-12-101(9). (4) "Recycled part" means a part or assembly that has been removed from a salvaged motor vehicle and is sufficiently
intact to be reused in a motor vehicle. (5) "Remanufactured part" means a used assembly, the core parts of which have been remachined while all other parts
have been replaced with new parts, resulting in an assembly that provides performance comparable to the original
(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
after market, recycled, or remanufactured CRASH REPAIR part THAT IS NOT AN
ORIGINAL MANUFACTURER'S EQUIPMENT PART in the repair of a motor vehicle unless: (1) the after market, recycled, or remanufactured part has permanent marks, symbols, or numbers that identify the
original manufacturer of the part; (2) the after market, recycled, or remanufactured part is at least equal in quality, fit, and performance to the original
part, the test for which must include any cost related to the adjustment of the part or the motor vehicle, or both, to ensure
proper fit and performance; (3) the insurer has advised the consumer in writing that the consumer is first required to consent in writing, for
insurance purposes, to the use of after market, recycled, or remanufactured parts in the repair of the motor vehicle; and (4) the consumer has signed a consent form that lists the specific after market, recycled, or remanufactured parts that are
being consented to by the consumer.
(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. Disclosure. (1) If after market, recycled, or remanufactured parts are proposed to be
installed to repair a consumer's motor vehicle, the insurer shall notify the consumer in writing on the estimate for repair
costs or on a separate document of the following information in at least 10-point type: THIS ESTIMATE HAS BEEN PREPARED BASED ON THE USE OF MOTOR VEHICLE PARTS NOT MADE BY
THE ORIGINAL MANUFACTURER. PARTS USED IN THE REPAIR OF YOUR MOTOR VEHICLE BY SOMEONE
OTHER THAN THE ORIGINAL MANUFACTURER ARE REQUIRED TO BE AT LEAST OF EQUAL QUALITY TO
THE ORIGINAL PARTS THAT THEY ARE REPLACING WITH RESPECT TO FIT AND PERFORMANCE. THE USE
OF THESE PARTS MAY AFFECT THE ORIGINAL MANUFACTURER'S WARRANTY AND EXTENDED
WARRANTIES, AND THE USE OF THESE PARTS MAY AFFECT A LEASE AGREEMENT. (2) The disclosure notification must include a descriptive list of any after market, recycled, or remanufactured part
proposed for use in repair of the motor vehicle.
NEW SECTION. Section 5. Violations -- penalties. A violation of [sections 1 through
5 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
6 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 6 5].
- END -
Latest Version of HB 181 (HB0181.02)
Processed for the Web on February 18, 1999 (3:20PM)
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