Prohibits insurers from limiting payment on claims for damage to motor vehicles based on pricing caps for labor, parts, paint or repair materials; prohibits insurers from recommending a particular repair facility.
Summary
This bill amends New York’s insurance law to regulate how insurers handle collision and comprehensive coverage claims for motor vehicles. It would prohibit insurers from limiting claim payments for vehicle repairs based on pricing caps for labor, parts, paint, or repair materials. It also requires that claim elements be negotiated with the insured or their representative by a licensed appraiser.
The bill further addresses insurer involvement in repair shop selection. If an insurer recommends or suggests a repair facility and the claimant accepts that recommendation, the insurer must ensure the vehicle is restored to its pre-loss condition at no additional cost to the claimant beyond any policy deductions. If the recommended shop does not fully restore the vehicle, the insurer must pay for completion of the repairs at a shop chosen by the claimant, again without additional cost to the claimant.
Impact
The bill would add a new subsection to Insurance Law section 2610 and apply to motor vehicle insurance policies and contracts issued, renewed, modified, altered, or amended on or after the effective date. In practical terms, it would restrict insurer claims-handling practices by banning repair-cost caps tied to preset pricing schedules and by limiting insurer control over repair facility recommendations. It would affect auto insurers, licensed appraisers, repair shops, and insured vehicle owners by shifting more leverage to claimants in repair negotiations and repair-location decisions.
Sentiment
The available context suggests the bill is consumer-protection oriented and likely intended to address concerns about insurer-driven repair pricing and steering claimants to preferred shops. The caption and text indicate a favorable posture toward ensuring full restoration of damaged vehicles and preventing underpayment of repair claims. No committee transcripts or votes are available, so there is no recorded legislative debate or formal vote history to indicate broader support or opposition.
Contention
The main points of contention are likely to be insurer pricing controls and repair-shop steering. Insurers may object that prohibiting labor, parts, paint, and materials caps could increase claim costs and reduce their ability to manage losses, while repair facilities and consumer advocates would likely support the measure as a way to ensure adequate repairs. Another potential dispute is the requirement that insurers bear additional costs if a recommended shop fails to restore the vehicle properly, which could be seen as expanding insurer liability and limiting their ability to direct repairs.
Prohibits insurers from limiting payment on claims for damage to motor vehicles based on pricing caps for labor, parts, paint or repair materials; prohibits insurers from recommending a particular repair facility.
Prohibits dental insurers from refusing to honor directions to pay from insured, modifying benefits to be paid. Requires providers to accept payment by virtual credit card as unfair claims practices.
Prohibits dental insurers from refusing to honor directions to pay from insured, modifying benefits to be paid. Requires providers to accept payment by virtual credit card as unfair claims practices.
Prohibits dental insurers from refusing to honor directions to pay from insured, modifying benefits to be paid. Requires providers to accept payment by virtual credit card as unfair claims practices.
Prohibits dental insurers from refusing to honor directions to pay from insured, modifying benefits to be paid. Requires providers to accept payment by virtual credit card as unfair claims practices.
Amends unfair claims practices law by requiring an insurance appraisal by a licensed appraiser where damage to a motor vehicle exceeds $5,000 (from $2,500) and eliminates language that prohibits an appraisal based on photos of a damaged motor vehicle.
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