CDI Announces Approval of Repair Regulations
Aimed at Consumer Protection
January 10, 2013
by Casey Neeley, email@example.com
The California Department of Insurance (CDI) has announced the
Office of Administrative of Law (OAL) has approved amended regulations
submitted by the CDI regarding the use of aftermarket auto parts.
When asked by glassBYTEs.com/AGRR magazine if
auto glass shops would be affected by the amended regulations,Tony
Cignarale, deputy commissioner of consumer services and market conduct
branch for the CDI confirmed, "Any repair to [a] damaged automobile
as a result of an insurance claim would be covered under the approved
regulation. This would include glass replacement and repair."
"The amendments build on existing protections by requiring insurers
to settle automobile insurance claims using repair standards described
by the Bureau of Automotive Repair, and not the insurer's own standards
of repair," says insurance commissioner Dave Jones. "This also places
greater accountability on the insurer when they require use of an
aftermarket replacement part so that damaged automobiles are repaired
properly and safely."
In a release issued by the CDI, it explains, "After investigating
complaints from consumers and automobile repair shops and evaluating
the law, CDI drew the conclusion that defective or otherwise non-compliant
aftermarket parts continued to infiltrate the repair process due
to insurers' failure to perform the necessary steps to ensure public
safety. CDI had been made aware of defective aftermarket bumper
reinforcements, hood latches, and other safety related parts being
required by insurers that otherwise were not compliant with current
repair standards. CDI had also been made aware of substantial costs
borne by automobile repair shops and their customers associated
with installing defective or poorly fitting parts required by insurers."
One of the added provisions from the amended document reads, "In
the repair of a particular vehicle, an insurer specifying the use
of a non-original equipment manufacturer replacement crash part
that is not equal to the original equipment manufacturer part in
terms of kind, quality, safety, fit and performance, or does not
otherwise comply with this section, shall pay for the costs associated
with returning the part and the cost to remove and replace the non-original
equipment manufacturer part with a compliant non-original equipment
manufacturer part or an original equipment manufacturer part."
The CDI says that these amendments will require insurers to pay
for costs associated with returning a defective part and the cost
to remove and replace said part with a compliant part; require the
current insurer's warranty to be expressly stated in the insurer-generated
repair estimate; and require an insurer to pay an amount to repair
the vehicle to its pre-damage condition in a "good and workmanlike
manner," based on the repair standards required for licensed shops
under the Bureau of Automotive Repair.
The regulations are expected to go into effect January 30, 2013.
View the full document of amended regulations here.
This story is an original story by AGRR™ magazine/glassBYTEs.com™. Subscribe to AGRR™ Magazine.
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