NU Online News Service, May 12, 9:04 p.m. EDT–The National Conference of Insurance Legislators (NCOIL) will hold a hearing at its summer meeting on a proposed certified aftermarket crash parts model law.
Such legislation would set requirements for the use of generic aftermarket parts and establish a certifying mechanism in the Certified Automotive Parts Association (CAPA).
At the group's March meeting, organization members clearly were divided on taking up the topic again after some very contentious hearings were held on the issue in 2002. At that time, NCOIL took no action and put off any discussion for three years.
The issue pits the interests of the aftermarket parts manufactures against those of the so-called Original Equipment Manufactures, or the auto industry.
The issue emerged for insurers after a jury returned a $1 billion verdict against State Farm in 1999, later reduced, for the company's arrangements for repair of customers' damaged vehicles that allowed use of generic parts without policyholders' knowledge.
The NCOIL Summer Meeting is set for July 7-10 in Newport, R.I. The hearing is set for the afternoon of the first day.
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