Assembly Bill No. 367–Assemblywoman Chowning
(by request)

 

March 17, 2003

____________

 

Referred to Committee on Transportation

 

SUMMARY—Makes various changes relating to repair of motor vehicles. (BDR 43‑216)

 

FISCAL NOTE:  Effect on Local Government: No.

                           Effect on the State: No.

 

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EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

 

AN ACT relating to motor vehicles; expanding the definition of “rebuilt vehicle” for the purposes of licensing and registration of motor vehicles; authorizing an insured to select a body shop for repairs to a motor vehicle; prohibiting an insurer from interfering with that selection; and providing other matters properly relating thereto.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

1-1  Section 1. NRS 482.098 is hereby amended to read as follows:

1-2  482.098  “Rebuilt vehicle” means a vehicle, one or more major

1-3  components of which have been replaced as set forth in this

1-4  subsection. For the purposes of this section, the requisite major

1-5  components of a vehicle which must be replaced for a vehicle to be

1-6  considered rebuilt are the:

1-7  1.  Cowl assembly;

1-8  2.  Rear clip assembly;

1-9  3.  Roof[;] assembly;

1-10      4.  Floor pan assembly; [or]

1-11      5.  Conventional frame coupled with one additional major

1-12  component[.] ; or

1-13      6.  Front clip assembly.

1-14      Sec. 2.  NRS 487.002 is hereby amended to read as follows:

1-15      487.002  1.  As used in this section:

2-1  (a) “Commissioner” means the Commissioner of Insurance.

2-2  (b) “Department” means the Department of Motor Vehicles.

2-3  2.  The Advisory Board on Automotive Affairs, consisting of

2-4  seven members appointed by the Governor, is hereby created within

2-5  the Division of Insurance of the Department of Business and

2-6  Industry.

2-7  3.  The Governor shall appoint to the Board one representative

2-8  of:

2-9  (a) The Commissioner;

2-10      (b) The Department;

2-11      (c) Licensed operators of body shops;

2-12      (d) Licensed automobile wreckers;

2-13      (e) Insurers of motor vehicles;

2-14      (f) Automobile manufacturers; and

2-15      (g) The general public.

2-16      4.  After the initial terms, each member of the Board serves a

2-17  term of 4 years. The members of the Board shall annually elect from

2-18  among their number a Chairman and a Vice Chairman. The

2-19  Commissioner shall provide secretarial services for the Board.

2-20      5.  The Board shall meet regularly at least twice each year and

2-21  may meet at other times upon the call of the Chairman. Each

2-22  member of the Board is entitled to the per diem allowance and travel

2-23  expenses provided for state officers and employees generally.

2-24      6.  Not less than 30 days before the adoption by the

2-25  Commissioner or the Department of any regulation pursuant to

2-26  subsection 7 or otherwise relating to the operation of body shops or

2-27  automobile wreckers, the Commissioner or the Director, as

2-28  appropriate, shall submit the proposed regulation to the Board for its

2-29  review and comment.

2-30      7.  The Commissioner and the Department, jointly, shall adopt

2-31  and the Board may propose, pursuant to NRS 233B.100, regulations

2-32  to the appropriate agency concerning:

2-33      (a) The use of new or used parts for the repair of motor vehicles

2-34  and parts that are not manufactured by the manufacturers of the

2-35  motor vehicles for which they are used.

2-36      (b) The survey methodology that may be used by an insurer to

2-37  ascertain prevailing charges for the repair of a motor vehicle.

2-38      [(c) The preferred use of a business which repairs motor

2-39  vehicles by an insurer of motor vehicles.]

2-40      Sec. 3.  NRS 690B.016 is hereby amended to read as follows:

2-41      690B.016  1.  An insured or a claimant under a policy of

2-42  insurance may have repairs to a motor vehicle made at the

2-43  licensed body shop of his choice. An insurer of motor vehicles

2-44  shall notify the insured or the claimant of this right when the

3-1  insurer is first contacted concerning a claim for damage to a

3-2  motor vehicle.

3-3  2.  An insurer of motor vehicles or a representative of the

3-4  insurer shall not:

3-5  (a) Knowingly recommend to an insured[,] or a claimant, or

3-6  direct an insured or a claimant to, a body shop in this state which is

3-7  not licensed pursuant to NRS 487.630; [or]

3-8  (b) Require an insured or a claimant to patronize any licensed

3-9  body shop in this state in preference to another such business[,

3-10  except in accordance with the regulations adopted pursuant to

3-11  paragraph (c) of subsection 7 of NRS 487.002.

3-12      2.]  or interfere with the right of an insured or a claimant to

3-13  use the licensed body shop of his choice; or

3-14      (c) Recommend that an insured or a claimant use a different

3-15  body shop than the insured or claimant has chosen, unless the

3-16  chosen body shop is not licensed pursuant to NRS 487.630.

3-17      3.  If an insurer or a representative of an insurer violates the

3-18  provisions of this section, an insured, a claimant or a licensed

3-19  body shop that is adversely affected by the violation may file a

3-20  complaint with the Commissioner. If the Commissioner finds that

3-21  a violation has occurred, he may impose an administrative fine of

3-22  not more than $5,000 against an insurer and not more than $500

3-23  against a representative of an insurer.

3-24      4.  The provisions of this section do not require an insurer to

3-25  pay more than the reasonable rate required pursuant to a policy of

3-26  insurance for repairs to a motor vehicle.

3-27      5.  For the purposes of this section, an insurer is entitled to rely

3-28  upon the validity of the license number included by the body shop

3-29  on its estimates and invoices for repairs.

 

3-30  H