Bill Text: NY A00960 | 2011-2012 | General Assembly | Introduced
Bill Title: Provides that an insurer may not hold nor acquire interest in a motor vehicle repair shop; insurers that before owned an interest in a motor vehicle repair shop must disclose to each insured that the insured has the right to use any motor vehicle repair shop selected by the insured.
Spectrum: Moderate Partisan Bill (Democrat 8-1)
Status: (Introduced - Dead) 2011-05-11 - enacting clause stricken [A00960 Detail]
Download: New_York-2011-A00960-Introduced.html
S T A T E O F N E W Y O R K ________________________________________________________________________ 960 2011-2012 Regular Sessions I N A S S E M B L Y (PREFILED) January 5, 2011 ___________ Introduced by M. of A. DESTITO, MAGNARELLI, ENGLEBRIGHT, PERRY, V. LOPEZ -- Multi-Sponsored by -- M. of A. CUSICK, GUNTHER, McENENY, J. MILLER -- read once and referred to the Committee on Transportation AN ACT to amend the vehicle and traffic law, in relation to insurer interests in certain motor vehicle repair shops THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: 1 Section 1. The vehicle and traffic law is amended by adding a new 2 section 398-j to read as follows: 3 S 398-J. INSURER INTEREST IN MOTOR VEHICLE REPAIR SHOPS PROHIBITED. 1. 4 PROHIBITION. ON OR AFTER THE FIRST OF SEPTEMBER FOLLOWING THE EFFECTIVE 5 DATE OF THIS SECTION, AN INSURER MAY NOT HOLD NOR ACQUIRE ANY OWNERSHIP 6 INTEREST IN A MOTOR VEHICLE REPAIR SHOP. 7 2. DISCLOSURE REQUIREMENTS. (A) AN INSURER THAT, BEFORE THE FIRST OF 8 SEPTEMBER FOLLOWING THE EFFECTIVE DATE OF THIS SECTION, HAS AN OWNERSHIP 9 INTEREST IN A MOTOR VEHICLE REPAIR SHOP MUST DISCLOSE TO EACH INSURED 10 THAT THE INSURED HAS THE RIGHT TO USE ANY MOTOR VEHICLE REPAIR SHOP 11 SELECTED BY THE INSURED. THE INSURER SHALL MAKE THE DISCLOSURE IN WRIT- 12 ING IN THE MANNER PRESCRIBED BY THE DEPARTMENT AND SHALL PROVIDE THE 13 DISCLOSURE: 14 (1) AT THE TIME THE POLICY IS DELIVERED, ISSUED FOR DELIVERY, OR 15 RENEWED; AND 16 (2) WHEN AN ACCIDENT CLAIM COVERED BY THE POLICY IS REPORTED TO THE 17 INSURER BY THE INSURED. 18 (B) AN INSURER MAY NOT OFFER AN INCENTIVE OR PROVIDE COMPENSATION TO 19 ANY PERSON TO REWARD THAT PERSON FOR REFERRING AN INSURED TO A MOTOR 20 VEHICLE REPAIR SHOP IN WHICH THE INSURER HAS AN OWNERSHIP INTEREST. 21 3. DIVESTMENT. ANY INSURER THAT HOLDS OR ACQUIRES ANY OWNERSHIP INTER- 22 EST IN A MOTOR VEHICLE REPAIR SHOP PRIOR TO THE FIRST OF SEPTEMBER EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD01832-01-1 A. 960 2 1 FOLLOWING THE EFFECTIVE DATE OF THIS SECTION, SHALL DIVEST ITSELF OF ANY 2 SUCH INTEREST ON OR BEFORE SUCH DATE. 3 4. DEFINITIONS. FOR PURPOSES OF THIS SECTION, "INSURER" MEANS AN 4 INSURER AUTHORIZED AS SUCH TO PERFORM AN INSURANCE BUSINESS IN THIS 5 STATE IN COMPLIANCE WITH THE INSURANCE LAW, BY REASON OF A LICENSE 6 ISSUED AND IN FORCE PURSUANT TO THE LAWS OF THIS STATE OR OF A CORPORATE 7 CHARTER GRANTED AND IN FORCE PURSUANT TO THE LAWS OF THIS STATE, BUT NOT 8 INCLUDING ANY INSURER EXEMPTED FROM COMPLIANCE WITH THE REQUIREMENT THAT 9 IT OBTAIN A LICENSE TO DO BUSINESS UNDER THE PROVISIONS OF THE INSURANCE 10 LAW. 11 S 2. This act shall take effect on the one hundred twentieth day after 12 it shall have become a law; provided, however, that effective immediate- 13 ly, the addition, amendment and/or repeal of any rule or regulation 14 necessary for the implementation of this act on its effective date is 15 authorized and directed to be made and completed on or before such 16 effective date.