NAII Asks Iowa to Alter Proposed Regs for Aftermarket Parts

National Association of Independent Insurers Counsel Ann Weber has asked Iowa’s Insurance Department to delete a sentence that the NAII feels, “could open the door for some auto repair shops to charge a fee for modifying competitive crash parts that do not need modification.”

The language is contained as part of proposed new regulations governing unfair claims practices. It would require insurers to “consider the cost of any modifications which may become necessary when making the repair ‘using parts not made by the original auto manufacturer.'”

“The use of aftermarket parts which are certified by a reputable entity such as the Certified Automotive Parts Association would fit just as a manufacturer’s part would since the aftermarket part must be of at least equal kind and quality to the original manufacturer’s part,” Weber stated in a letter to the department. “The inclusion of this sentence might encourage the inclusion of a ‘modification’ cost in a repair by unscrupulous entities when in fact no modification would be required when certified aftermarket parts are used.”

She also noted the NAII’s disgareement with a proposed change in the definition of aftermarket crash parts to include automobile glass. Weber indicated that it would be inconsistent with a state law that specifically excludes auto glass in that context.

In addition Weber asked the department to delete a provision that would require insurers to notify third-party claimants at least 60 days before the date a statute of limitations will run. “The insurer does not hold a contractual relationship with a third-party claimant,” Weber asserted. “Existing Iowa statutes and case law should amply cover the issue of third-party claims.”

Topics Iowa