Amendment SSA1-SB63

SB63-SSA1,3,12 632.38 (2) Notice of intended use and authorization for use; newer or lower mileage vehicles. (intro.) An insurer or the insurer's representative may not require directly or indirectly the use of a nonoriginal manufacturer replacement part in the repair of an insured's motor vehicle, unless if the model year of the motor vehicle is 5 years old or less or the actual mileage of the motor vehicle is 50,000 miles or less, only if the insurer or the insurer's representative provides to the insured the notice and authorization form described in this subsection in the manner required in sub. (3) or (4) and receives written authorization from the insured before any nonoriginal manufacturer replacement part is installed on the insured's motor vehicle. The notice shall be in writing and shall include all of must be given, and authorization must be obtained, on a form that is entitled "Replacement Parts Notice and Authorization Form" and that includes only the following information:

SB63-SSA1, s. 9 Section 9. 632.38 (2) (a) of the statutes is amended to read:

SB63-SSA1,3,16 632.38 (2) (a) A clear identification of each nonoriginal manufacturer replacement part that is intended for use will be used in the repair of the insured's motor vehicle if the insured provides authorization for the part's use.

SB63-SSA1, s. 10 Section 10. 632.38 (2) (b) of the statutes is repealed.

SB63-SSA1, s. 11 Section 11. 632.38 (2) (c) of the statutes is created to read:

SB63-SSA1,3,21 632.38 (2) (c) A statement that the insured may choose to have replacement parts made by or for the manufacturer of the insured's motor vehicle used in the repair of the insured's motor vehicle.

SB63-SSA1, s. 12 Section 12. 632.38 (2) (d) of the statutes is created to read:

SB63-SSA1,3,24 632.38 (2) (d) A statement that the insurer's obligation to cover repairs to the insured's motor vehicle will not be affected by the insured's choice under par. (c).

SB63-SSA1, s. 13 Section 13. 632.38 (2) (e) of the statutes is created to read:

SB63-SSA1,4,7 632.38 (2) (e) Two signature lines for the insured's signature, with one line designated as authorizing the use of nonoriginal manufacturer replacement parts in the repair and the other line designated as requiring the use of only original manufacturer replacement parts in the repair. In addition, the form shall allow the insured to authorize the use of a nonoriginal manufacturer replacement part or to require the use of an original manufacturer replacement part with respect to each replacement part to be used in the repair.

SB63-SSA1, s. 14 Section 14. 632.38 (2m) of the statutes is created to read:

SB63-SSA1,4,20 632.38 (2m) Notice and acknowledgment of use; older and higher mileage vehicles. An insurer or the insurer's representative may require the use of a nonoriginal manufacturer replacement part in the repair of an insured's motor vehicle if the model year of the motor vehicle is more than 5 years old and the actual mileage of the motor vehicle is more than 50,000 miles, only if the insurer or the insurer's representative provides to the insured the notice and acknowledgment form described in this subsection in the manner required in sub. (3) and receives written acknowledgment from the insured before any nonoriginal manufacturer replacement part is installed on the insured's motor vehicle. The notice must be given, and acknowledgment must be obtained, on a form that is entitled "Replacement Parts Notice and Acknowledgment Form" and that includes only the following information:

SB63-SSA1,4,22 (a) A clear identification of each nonoriginal manufacturer replacement part that will be used in the repair of the insured's motor vehicle.

SB63-SSA1,4,24 (b) A signature line for the insured's signature, designated as acknowledging the use of nonoriginal manufacturer replacement parts in the repair.

SB63-SSA1, s. 15 Section 15. 632.38 (3) (title) of the statutes is amended to read:

SB63-SSA1,5,2 632.38 (3) (title) Delivery of notice and authorization or acknowledgment form.

SB63-SSA1, s. 16 Section 16. 632.38 (3) (a) of the statutes is amended to read:

SB63-SSA1,5,11 632.38 (3) (a) The notice and authorization form described in sub. (2) or the notice and acknowledgment form described in sub. (2m), whichever is appropriate, shall appear on or be attached to the estimate of the cost of repairing the insured's motor vehicle if the estimate is based on the use of one or more nonoriginal manufacturer replacement parts and is prepared by the insurer or the insurer's representative. The insurer or the insurer's representative shall deliver the estimate and the notice and authorization form or notice and acknowledgment form to the insured before the motor vehicle is repaired.

SB63-SSA1, s. 17 Section 17. 632.38 (3) (b) of the statutes is amended to read:

SB63-SSA1,5,20 632.38 (3) (b) If the insurer or the insurer's representative directs the insured to obtain one or more estimates of the cost of repairing the insured's motor vehicle and the estimate approved by the insurer or the insurer's representative clearly identifies one or more nonoriginal manufacturer replacement parts to be used in the repair, the insurer or the insurer's representative shall assure delivery of the notice described in sub. (2) deliver the estimate approved by the insurer or the insurer's representative, with the notice and authorization form or notice and acknowledgment form attached, to the insured before the motor vehicle is repaired.

SB63-SSA1, s. 18 Section 18. 632.38 (3) (c) of the statutes is repealed.

SB63-SSA1, s. 19 Section 19. 632.38 (3) (d) of the statutes is repealed.

SB63-SSA1, s. 20 Section 20. 632.38 (4) of the statutes is repealed.

SB63-SSA1, s. 21 Section 21. 632.38 (5) of the statutes is created to read:

SB63-SSA1,6,3 632.38 (5) Rules for motorcycle parts. The commissioner shall promulgate rules that specify the parts of a motorcycle that are replacement parts, as defined in sub. (1) (e).

SB63-SSA1, s. 22 Section 22 . Nonstatutory provisions.

SB63-SSA1,6,8 (1) Rules. The commissioner of insurance shall submit in proposed form the rules required under section 632.38 (5) of the statutes, as created by this act, to the legislative council staff under section 227.15 (1) of the statutes no later than the first day of the 6th month beginning after the effective date of this subsection.

SB63-SSA1, s. 23 Section 23. Initial applicability.

SB63-SSA1,6,11 (1) This act first applies to claims under motor vehicle insurance policies issued or renewed on the effective date of this subsection.

SB63-SSA1, s. 24 Section 24. Effective dates. This act takes effect on the first day of the 3rd month beginning after publication, except as follows:

SB63-SSA1,6,15 (1) The treatment of section 632.38 (1) (e) and (5) of the statutes and Section 22 (1 ) of this act take effect on the day after publication.

SB63-SSA1,6,16 (End)