Northeastern Norrtheastern Edition E d i t i on Connecticut Delaware Maine Maryland Massachusetts New Hampshire
New Jersey New York Pennsylvania Rhode Island Vermont
35
YEARS
VOL. 8 ISSUE 5 AUGUST 2017
www.autobodynews.com ww ww.autobodynews.com
State Insurance Regulator Expresses Openness to Ideas Implemented in Other States
Takata Airbag Recall Expands by 2.7M More Vehicles, Ca2SO4 Desiccant is Now Suspect in Certain Inflators
time. Au first to e h o t ripti n. If yo bod r u’r c o s e ub
where we waii are erson Ha p ’ s s ho di in ther p no
Committee” began its presmechanism is to prevent the propelby Autobody News Staff entation with a look at the lant, largely ammonium nitrate, from prospect of repealing the Collision repair shops and asIn a dramatic expansion of what is al- becoming hydrated and therefore unsociations often express frus1945 McCarran-Ferguson ready the largest automotive recall in stable. In chemical terms instability tration in trying to work with Act, the federal antitrust exhistory, Takata Corp.—which recently can affect the burn rate of the comtheir state insurance regulaemption granted to insurers. filed for bankruptcy protection—has pounds and behave unpredicably, leadtors on issues related to steerBob Redding, the Automotive just added 2.7 million vehicles to the ing to malfunction. Environmental moisture, high ing, use of non-OEM parts or Brooke Stringer of Service Association lobbyist total. the National Associwho serves as vice-chairman other insurance claims pracVehicles made by Ford, Nissan temperatures, and age contribute to the ation of Insurance of the CIC committee, said the tices they consider unfair or and Mazda are using a type of airbag process that can disastrously fragment Commissioners (NAIC) said NAIC U.S. House has approved legthe airbags’ inflator mechanism. illegal. But presentations and inflator including a desiccant, or dryNHTSA has determined the root discussions at a recent Colli- supports state rather islation overturning the aning agent, that previously was thought sion Industry Conference than federal regula- titrust exemption for health to be safe. Commonly encountered cause of the inflator casing shattering tion of insurance insurance companies. But, he (CIC) on state or federal regdesiccants are solids that absorb water. problem is airbags that use ammonium ulation of the insurance industry may said, it was too early at that They are frequently used in nitrate-based propellent without a reoffer an example of how to approach time to know if the Senpackaged foods to retain liable chemical drying agent, i.e., o m c l e e s w ws g this iss reade ate would also ingetting regulators to act. crispness and are in without an effective desiccant. The e ue N in in rs y ead The CIC “Governmental See Insurance Regulator, Page 54 no way explosive in propellant oxidizes hydrated fuel granr a ules and wafers explosively, causing their own right. However the the inflator’s casing to rupture and fire desiccant’s role the shattered fragments with someAASP/NJ Meeting Ignites Discussion in the Takata times lethal velocity. About Business Practices See Takata Adds to Recall, Page 22 airbag inflation Last month, representatives from shops difficult task. all around New Jersey gathered at the Bryant shared Mahalo Nui Loa Mahal Holiday Inn in Totowa and the Clarion wisdom from his Maine Autobody Association Responds Hotel and Conference Center in Toms decades of experito Gov. LePage’s Veto of Legislative River to partake in two nights ence in the of education on collision reindustry with Document 1540 pair business practices led by attendees, giving by Chasidy Rae Sisk that they are under no obligation to the Alliance of Automotive guests tips and notes about use that repairer’s services. Service Providers of New how to get the most out of In June, Maine Governor Paul LePage Legislative Document 1540 Jersey (AASP/NJ) Executive their businesses without suf(R) vetoed Legislative Document would have required insurers recomDirector Charles Bryant. As fering from stagnating insur1540, which sought to require insurers mending a shop to explicitly inform any shop owner knows, navance practices. Charles Bryant in ME to communicate a specific auto claimant of their legal right to choose igating the minefield of this “Who gets an authorizabody shop choice disclosure. The a shop to fix their vehicle, stating that industry and owning a successful shop tion to repair every time a car comes House voted 102–41 to override the the policy will cover reasonable costs when dealing with insurers can be a See AASP/NJ Meeting, Page 15 veto, but the Senate failed to acquire of repairing the vehicle to its pre-acthe two-thirds margin required to overcident condition no matter where the ride the Governor’s veto with a vote of consumer has their repairs made. 20–14. Governor LePage supported his The bill, which passed ME’s veto by citing a lack of consumer comHouse by an overwhelming margin plaints and evidence of a problem and by a narrower margin in the Senfrom the Department of Insurance, ate earlier in June, would have excalling it a “solution in search of a panded upon the current shop choice problem” and claiming the added verlanguage in the ME Revised Statutes, biage “micromanages ME businesses which prohibits insurers and their and creates more unnecessary regulaagents from recommending a specific tions for ME’s automotive insurance See Gov. Veto, Page 16 shop without informing their claimant by John Yoswick
our publica ting t ibu ct us for a fre ion es f str onta c
Change Service Requested
P.O. BOX 1516, CARLSBAD, CA 92018
Presorted Standard US Postage PAID San Bernardino, CA Permit #2244