THE SENATE	S.B. NO.	2326
TWENTY-SIXTH LEGISLATURE, 2012
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO MOTOR VEHICLE INSURANCE.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  Section 431:10C-313.6, Hawaii Revised Statutes, is amended to read as follows:

"[[]§431:10C-313.6[]] Original equipment manufacturer's [and like kind and quality] parts[.]; used or aftermarket parts.  (a)  An insurer shall make available a choice to the insured of authorizing a repair provider to utilize a [like kind and quality] used or aftermarket part of an equal or better quality than the original equipment manufacturer part if such part is available or an original equipment manufacturer part for motor vehicle body repair work.  If the insured [or claimant] chooses the use of an original equipment manufacturer part, the insured [or claimant] shall pay the additional cost of the original equipment manufacturer part that is in excess of the [equivalent like kind and quality] used or aftermarket part, unless the vehicle is currently under the manufacturer's warranty or original equipment parts are required by the vehicle manufacturer's warranty.

     (b)  A [like kind and quality] used or aftermarket part under subsection (a), of an equal or better quality than the original equipment manufacturer part, shall carry a guarantee in writing for the quality of the [like kind and quality] used or aftermarket part for not less than [ninety days or for] the same guarantee period as the original equipment manufacturer part[, whichever is longer].  The guarantee shall be provided by the insurer.

     (c)  [Like kind and quality] Used or aftermarket parts, certified or approved by governmental or industry organizations, shall be utilized if available.

(d)  As used in this section:

"Aftermarket part" means a new, unused part sold by a manufacturer other than the original vehicle manufacturer.

"Original equipment manufacturer part" means a new, unused part sold by the vehicle manufacturer.

"Used part" means an original equipment manufacturer part which has been removed from a vehicle in which the part was installed prior to its removal from the vehicle."

     SECTION 2.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 3.  This Act shall take effect upon its approval.

INTRODUCED BY:

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Report Title:

Motor Vehicle Insurance; Used or Aftermarket Parts

Description:

Requires insurers to make available the use of certain used or aftermarket parts instead of like kind and quality parts in motor vehicle body repairs.

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