BillCam

HB 432-FN - AS INTRODUCED

2019 SESSION

19-0671

01/10

HOUSE BILL 432-FN

AN ACT relative to automobile insurance reimbursement rates.

SPONSORS: Rep. Williams, Hills. 4; Rep. McBeath, Rock. 26; Rep. Goley, Hills. 8; Rep. Green, Rock. 13; Rep. Packard, Rock. 5; Sen. Bradley, Dist 3; Sen. Birdsell, Dist 19; Sen. Watters, Dist 4

COMMITTEE: Commerce and Consumer Affairs

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ANALYSIS

This bill clarifies automobile insurance reimbursement rates for repair of damaged vehicles.

This bill is a result of the committee to study reimbursement rates under automobile insurance polices, established by 2018, 13.

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

19-0671

01/10

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Nineteen

AN ACT relative to automobile insurance reimbursement rates.

Be it Enacted by the Senate and House of Representatives in General Court convened:

1 Unfair Insurance Practices; Automobile Repair. Amend RSA 417:4, XX(c) to read as follows:

(c) Nothing shall prohibit any insurance company, agent or adjuster from providing to such insured person or entity the name of an automobile glass company or automobile repair company with which arrangements may have been made with respect to automobile glass or repair prices or services. If a name is provided, there must be disclosure by the insurance company, agent or adjuster to the insured person or entity that any other automobile glass company or automobile repair company or location may be used at the discretion of the insured person or entity. However, the insurer may limit payment for such work based on the fair and reasonable price in the area by repair shops or facilities providing similar services with the usual and customary guarantees as to materials and workmanship. If an independent repair shop or facility and an insurer are unable to agree on a price, then for the purposes of this section "fair and reasonable price" shall mean the price available from a recognized, competent and conveniently located, independent repair shop or facility which is willing and able to repair the damaged automobile within a reasonable time. Insurance carriers offering insurance in the state of New Hampshire shall reimburse New Hampshire businesses capable of conducting mechanical repairs covered by such insurance in the amount equal to that which is normally and reasonably charged by the mechanical repairer for like service and repairs rendered to retail consumers who are not using insurance coverage for such repair. Mechanical repairs shall be defined by the industry utilized repair estimate database providers used by the repairer.

(d) When an automobile repairer follows the paint and materials estimate from a paint manufacturer or nationally recognized third party guide or combination thereof, the insurer shall reimburse the repairer invoice based on such estimate.

2 Effective Date. This act shall take effect 60 days after its passage.

LBAO

19-0671

12/27/18

HB 432-FN- FISCAL NOTE

AS INTRODUCED

AN ACT relative to automobile insurance reimbursement rates.

FISCAL IMPACT: [ X ] State [ ] County [ ] Local [ ] None

Estimated Increase / (Decrease)

STATE:

FY 2020

FY 2021

FY 2022

FY 2023

Appropriation

Revenue

Indeterminable Increase

Expenditures

Indeterminable Increase

Funding Source:

[ ] General [ ] Education [ ] Highway [ X ] Other - Insurance Company Assessments

METHODOLOGY:

This bill clarifies automobile insurance reimbursement rates for repair of damaged vehicles. The Insurance Department indicates this bill would require insurers to pay auto repair businesses for repairs the same rate as would be reasonably charged to retail consumers who are not using insurance coverage for the repair. The Department assumes this change may result in additional complaints fielded by the Consumer Services Division. Such an increase may necessitate additional staff to field the complaints and follow up with repair shops and insurance companies, however the Department is not able to determine the likelihood of a significant increase in complaints or the potential cost. The source of funds for such costs would be from assessments to insurers.

AGENCIES CONTACTED:

Insurance Department