NATIONAL CONFERENCE OF INSURANCE LEGISLATORS
PROPOSED AMENDMENTS TO A PROPOSED
CERTIFIED AFTERMARKET CRASH PARTS MODEL ACT
Proposed amendments adopted by an NCOIL Property-Casualty Insurance Subcommittee on October 11, 2002.
To be considered by the NCOIL Property-Casualty Insurance Committee on November 22, 2002.
Table of Contents
Section 1.
Section 2.
Section 3.
Section 4.
Section 5.
Section 6.
Section 7.
Short Title
Purpose
Definitions
Use of Certified Aftermarket Crash Parts
Notification
Leased and Financed Vehicles State Certification
Effective Date
Section 1. Short Title
This Act may be called the “Certified Aftermarket Crash Parts Model Act.”
Section 2. Purpose
The purpose of this Act is to protect consumers from inferior aftermarket crash parts used to repair
motor vehicles by requiring that all non-car company aftermarket crash parts be certified by an
independent third party. This Act further requires notification by the body repair facility shop or
through an insurance estimate as to the use of certified aftermarket and other crash parts. If
requested by the consumer, Nnotification regarding identification of the parts’ manufacturer or
distributor, so long as that manufacturer can be identified by mechanized processes or systems, is also
required. The written estimate shall notify consumers that 1) primary liability shall rest with the
manufacturer for any part that was the proximate cause of an injury and that 2) secondary
liability shall rest with the insurer in such cases if, and only if, the insurer mandated in its policy
no option other than the use of non-OEM crash parts. In addition, the Act allows that an
insured whose policy covers only non-OEM crash parts shall be able to have his or her car
repaired with an OEM crash part should he or she choose to pay the repair facility the
difference between the OEM and the covered non-OEM part.
Section 3. Definitions
1. a. “Aftermarket crash part” - A motor vehicle replacement part, manufactured by other than
the original equipment manufacturer, for any of the non-mechanical parts made of sheet
metal, plastic, fiberglass or of similar material which generally constitute the exterior of a
motor vehicle, including the following parts: outer panels; hoods; fenders; doors; trunk lids;
exterior coverings of bumpers but not including windows or hubcaps. The aforementioned
categories may be expanded as new certification standards are developed by entities qualified
under paragraph (4d) of this Section.
2. b. “Car Company” - A motor vehicle manufacturer or distributor that produces or markets,
under its own name, original equipment manufacturer (OEM) crash parts for use in
motor vehicles that it manufactures or distributes under its own name.
3. c. “Non-Car Company” or “Independent Manufacturer” - A manufacturer or distributor that
produces or markets, under its own name, crash parts for use in motor vehicles that it does
not manufacture or distribute.
4. d. “Independent Third-Party Certifier” - A certifying entity, to be qualified and acceptable for
purposes of this Act, shall:
(1) not be owned, operated, or maintained by any car company or non-car company
manufacturer of aftermarket crash parts;
(2) conform to all generally accepted guidelines for independent, third-party certification and
standard setting programs;
(3) have adopted written standards containing conditions to be fulfilled by a manufacturer of
crash parts;
(4) test or contract with an independent testing organization that tests crash parts, using
suitable equipment and techniques;
(5) administer its certification program in a non-discriminatory manner regarding any
manufacturer or supplier of crash parts;
(6) provide a system to determine that certified parts continue to equal or exceed the parts
placed on the vehicle during initial assembly in terms of fit, finish, quality and performance
and, failing to so conform, to decertify and advise crash part users of withdrawals of
certification for any such part;
(7) provide mechanisms for quickly receiving inquiries and promptly resolving disputes that
arise under the program in regard to consumers, insurers or repair shops;
(8) provide a means of identifying each certified crash part and provide a system of security
that guards against misuse of the identification;
(9) provide updated lists of certified crash parts on at least a weekly basis; and
(10)provide the insurance department [or other appropriate state agency] and the public with
an annual report underscoring any significant developments, problems or changes relating to
certification procedures or requirements.
5. e. “Certified aftermarket crash part” - An aftermarket crash part for which a certification has been
issued by an independent third-party certifier as defined in Section 3(4d) of this Act. All
aftermarket crash parts certified shall be warranted by the manufacturer, distributor and/or the
insurer as being equal to or exceeding the parts placed on the vehicle during initial assembly in
terms of fit, finish, quality and performance. Primary liability shall rest with the manufacturer
for any part that was the proximate cause of an injury. Secondary liability shall rest with the
insurer in such cases if, and only if, the insurer mandated in its policy no option other than
the use of non-OEM crash parts.
Drafting Note: A state may wish to consider assigning additional liability to the
independent certifier of the defective certified aftermarket crash part.
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6. f. “Insurer” - An insurance company and any person authorized to represent the insurer with respect
to a claim and who is acting within the scope of the person’s authority.
7. g. “Repair Facility” - A motor vehicle dealer, garage, body shop or other commercial entity which
undertakes the repair or replacement of those parts that generally constitute the exterior of the
motor vehicle.
Section 4. Use of Certified Aftermarket Crash Parts
All non-car company aftermarket crash parts, as defined in Section 3(1a), which are used to repair a
motor vehicle and which are certified, shall be presumed to be suitable replacement parts.
A. At the consumer’s request, the consumer has the right to receive, at no additional cost,
OEM crash parts in the event his or her motor vehicle is 24 months old or newer and has
30,000 or fewer miles on it.
Section 5. Notification
A. In all instances the written estimate prepared by the insurer or the repair facility, or both, shall
clearly identify, if requested by the consumer, the manufacturer or distributor of each such part
so long as that manufacturer can be identified by automated processes or through the
manufacturer’s warranty. The written estimate shall indicate that all parts used in the
preparation of the estimate are warranted by the manufacturer and distributor of such parts,
as well as by the insurer for which the estimate was written. Further, the estimate shall
notify the consumer that 1) primary liability shall rest with the manufacturer for any part
that was the proximate cause of an injury and that 2) secondary liability shall rest with the
insurer in such cases if, and only if, the insurer mandated in its policy no option other than
the use of non-OEM crash parts.
Drafting Note: If a state has chosen to assign additional liability to the independent
certifier of a defective certified aftermarket crash part, the state may wish to require
notification to that effect.
A notification shall be attached to, or included in, the estimate and shall contain the following
information in no smaller than 12-point type:
THIS ESTIMATE HAS BEEN PREPARED BASED ON THE USE OF CRASH PARTS
FROM THE SOURCES(S) CHECKED BELOW:
□ SUPPLIED BY THE MANUFACTURER OF YOUR VEHICLE OR
□ SUPPLIED BY AN INDEPENDENT MANUFACTURER OF CERTIFIED
AFTERMARKET CRASH PARTS SUPPLIED BY AN INDEPENDENT
MANUFACTURER. ALL AFTERMARKET CRASH PARTS USED IN THE
PREPARATION OF THIS ESTIMATE ARE WARRANTEED BY THE
MANUFACTURER OR DISTRIBUTOR OF SUCH PARTS AND/OR AN INSURER
FOR WHICH THE ESTIMATE WAS WRITTEN.
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□ SUPPLIED BY AN INDEPENDENT MANUFACTURER OF A NONCERTIFIED AFTERMARKET CRASH PART
□ SUPPLIED AS A SALVAGED CRASH PART
□ OTHER _______________________________
B.
An insured whose policy pays only for non-OEM crash parts but who wishes to have his
or her car repaired with an OEM crash part shall be able, if he or she chooses, to pay the
repair facility the difference between the OEM and the covered non-OEM crash part.
Insurers shall notify consumers of this option by including it in the language of each
consumer’s insurance policy.
Drafting Note: A state further may require insurers to notify consumers, in writing and
at the time of policy selection, of the difference between OEM, certified aftermarket,
non-certified aftermarket, and salvaged crash parts.
Section 6. Leased and Financed Vehicles State Certification
No individual, company or agent shall impose any penalty upon an individual leasing or
financing a motor vehicle that repairs said vehicle using certified aftermarket crash parts.
A state shall be responsible for establishing the standards by which it designates
independent third-party certifiers of aftermarket crash parts.
Drafting Note: A state may wish to consider whether an independent certifier of
aftermarket crash parts has been accredited by a national, financially disinterested
accrediting body, including, but not limited to, the American National Standards
Institute (ANSI).
Drafting Note: In an effort to discourage the creation of additional state bureaucracies, a
state may wish to require that an existing state agency assume responsibility for the
process of designating independent third-party certifiers of aftermarket crash parts.
Section 7. Effective Date
This act shall be effective on [insert date].
SYNOPSIS
This bill is designed to protect consumers from inferior crash parts used in the repair of their motor
vehicles. Non-car company (independent) manufacturers of non-mechanical parts used in repair of
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automobiles shall undergo certification by an independent third party. This certification provides notice
to the public that the crash parts used to repair the vehicle, equal or exceed the parts placed on the
vehicle during initial assembly in terms of fit, finish, quality and performance.
The consumer is further protected by the requirement that the insurance estimate or the body repair
facility shop will furnish, at the consumer’s request, a notification identifying the manufacturer or
distributor of the certified part (so long as that manufacturer can be identified by automated processes
or through the manufacturer’s warranty) and disclosing that the part is warranted by the manufacturer,
the distributor, and the insurer for which the repair estimate was written. The estimate further
shall explain that 1) primary liability shall rest with the manufacturer for any part that was the
proximate cause of an injury and that 2) secondary liability shall rest with the insurer in such
cases if, and only if, the insurer mandated in its policy no option other than the use of nonOEM crash parts. Since aftermarket crash parts must be certified, there shall be no penalty imposed
on an individual who finances or leases a motor vehicle for the use of non-car company crash parts.
Consumer choice is protected by providing that policyholders may have their motor vehicles
repaired with OEM crash parts should they choose to pay the difference between those parts
and the non-OEM crash parts covered by their insurance policies.
Additions to previous draft of proposed model act indicated by bold face.
Deletions from previous draft of proposed model act indicated by strikethrough.
© 2002 National Conference of Insurance Legislators
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