HB 5176 — AN ACT CONCERNING AUTOMOBILE INSURANCE COVERAGE.

Bill Text

• Raised Bill View text Current pdf

AI-generated reading aid from the bill's amendatory text — verify against the official bill.

The bill modifies regulations on automobile insurance coverage, particularly regarding the use of replacement parts and the declaration of constructive total losses.

• Section 38a-355

  Whenever repairs are necessary to the visible exterior sheet metal or plastic parts of a damaged private passenger motor vehicle, as defined in section 38a-363, any → Except as provided in subdivision (2) of this subsection, whenever a repair is necessary to an exterior part, an insurer or repairer preparing a written estimate of the cost of the repair shall clearly identify in such estimate each exterior part to be used which is not manufactured by the original manufacturer of the damaged exterior part in such motor vehicle.

  The bill clarifies and updates the language regarding estimates for repairs to exterior parts of motor vehicles.

• Section 38a-355

  no insurer that issues a private passenger nonfleet automobile insurance policy in this state shall deny coverage for, or require a repairer to install, a specific replacement part on a damaged private passenger motor vehicle if (A) the repairer determines that installing the replacement part would be unsafe, or (B) another replacement part is available from the original manufacturer of the damaged part that the repairer intends to replace and (i) such vehicle was manufactured fewer than one thousand eight hundred days before such vehicle was damaged, or (ii) the person requesting the written estimate described in subdivision (1) of this subsection does not consent to installing a replacement part from another manufacturer and the repairer determines that the replacement part from the original manufacturer is superior in quality to any other available replacement part. → No insurer that issues a private passenger nonfleet automobile insurance policy in this state on or after January 1, 2021, shall deny coverage for, or require a repairer to install, a specific replacement part on a damaged private passenger motor vehicle if (A) the repairer determines that installing the replacement part would be unsafe, or (B) another replacement part is available from the original manufacturer of the damaged part that the repairer intends to replace and (i) such vehicle was manufactured fewer than one thousand eight hundred days before such vehicle was damaged, or (ii) the person requesting the written estimate described in subdivision (1) of this subsection does not consent to installing a replacement part from another manufacturer and the repairer determines that the replacement part from the original manufacturer is superior in quality to any other available replacement part.

  This provision establishes clear guidelines for insurers regarding denial of coverage for replacement parts based on safety and quality.

• Section 38a-353

  Whenever any damaged motor vehicle covered under an automobile insurance policy has been declared to be a constructive total loss by the insurer, the insurer shall, in calculating the value of such vehicle for purposes of determining the settlement amount to be paid to the claimant, use at least the average of the retail values given such vehicle by (1) the National Automobile Dealers Association used car guide or any other publicly available automobile industry source that has been approved for such use by the Insurance Commissioner, and (2) one other automobile industry source that has been approved for such use by said commissioner. → Except as provided in subdivision (2) of this subsection, whenever any damaged motor vehicle covered under an automobile insurance policy has been declared to be a constructive total loss by the insurer, the insurer shall, in calculating the value of such vehicle for purposes of determining the settlement amount to be paid to the claimant, use at least the average of the retail values given such vehicle by (A) the National Automobile Dealers Association used car guide or any other publicly available automobile industry source that has been approved for such use by the Insurance Commissioner, and (B) one other automobile industry source that has been approved for such use by said commissioner.

  The section reinforces the requirement for insurers to base the settlement value of a constructive total loss on specified retail values.

• Section 38a-353

  for the purposes of this section, "constructive total loss" means the cost to repair or salvage damaged property, or the cost to both repair and salvage such property, equals or exceeds the total value of the property at the time of loss. → For the purposes of this section, "constructive total loss" means the cost to repair or salvage damaged property, or the cost to both repair and salvage such property, equals or exceeds the total value of the property at the time of loss.

  This clarification retains the definition of constructive total loss without significant alteration.

• Section 38a-816

  The following are defined as unfair methods of competition and unfair and deceptive acts or practices in the business of insurance: (1) Misrepresentations and false advertising of insurance policies. → The following are defined as unfair methods of competition and unfair and deceptive acts or practices in the business of insurance.

  The bill establishes a comprehensive definition of unfair practices in the insurance industry.

Action History

1. February 21, 2020

   PUBLIC HEARING 0225

2. February 19, 2020

   REF. TO JOINT COMM. ON Insurance and Real Estate

Sponsors

• Jay M. Case · Primary

Subjects