00                     CS FOR SENATE BILL NO. 348(TRA)                                                                    
01 "An Act relating to insurance for and work on certain motor vehicle repairs; and                                        
02 providing for an effective date."                                                                                       
03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
04    * Section 1.  AS 21.36 is amended by adding a new section to read:                                                 
05            Sec. 21.36.295.  Coverage for certain motor vehicle aftermarket crash parts.                               
06       (a)  An insurer that offers a personal automobile insurance policy that provides coverage                         
07       for repair of the automobile shall provide the insured a warranty for an aftermarket crash                        
08       part installed during repair work on the automobile.  The warranty must guarantee that                            
09       the part meets or exceeds the quality of the original part.  Before issuing or renewing a                         
10       personal automobile insurance policy, the insurer shall provide the applicant or insured                          
11       written notice of the warranty available under this subsection.                                                   
12            (b)  An insurer may not require, directly or indirectly, that a motor vehicle repair                         
13       shop supply or install an aftermarket crash part unless the use of the part is allowed under                      
14       AS 45.45.185(a) and the part is at least equivalent in fit, finish, function, and corrosion                       

01       resistance to the original equipment part being replaced.                                                         
02            (c)  In this section, "aftermarket crash part" has the meaning given in                                      
03       AS 45.45.185.                                                                                                     
04    * Sec. 2.  AS 45.45 is amended by adding a new section to read:                                                    
05            Sec. 45.45.185.  Motor vehicle repairs.  (a)  Except with the consent of the                               
06       motor vehicle owner, a motor vehicle repair facility may not use an aftermarket crash                             
07       part for repair work on a motor vehicle if the motor vehicle is being repaired during the                         
08       year of the vehicle's manufacture or during the three years following the year of the                             
09       vehicle's manufacture.                                                                                            
10            (b)  An invoice prepared by a motor vehicle repair facility for repair work must                             
11       indicate if an aftermarket crash part is used in making a repair allowed under this section.                      
12            (c)  If a crash part used in the repair work is not supplied by the original                                 
13       equipment manufacturer, the motor vehicle repair facility shall include in the repair cost                        
14       estimate the following statement:                                                                                 
15            This estimate has been prepared based on the use of a motor                                                  
16            vehicle replacement part not made by the original equipment                                                  
17            manufacturer.  A warranty applicable to these replacement parts is                                           
18            provided by the insurer rather than the manufacturer of your                                                 
19            vehicle.  The use of a motor vehicle replacement part not made by                                            
20            the original equipment manufacturer may invalidate the remaining                                             
21            warranty of the original equipment manufacturer on that motor                                                
22            vehicle part.  The insurer will provide a copy of the warranty for                                           
23            parts not made by the original equipment manufacturer.                                                       
24            (d)  Nothing in this section affects the right of a third-party claimant under a                             
25       policy of liability insurance to have the vehicle repaired using new original equipment                           
26       parts.                                                                                                            
27            (e)  In this section, "aftermarket crash part" means a motor vehicle replacement                             
28       part that is not supplied by or at the direction of the original equipment manufacturer and                       
29       that is generally installed as a result of a crash or collision.                                                  
30    * Sec. 3.  This Act takes effect immediately under AS 01.10.070(c).