Airbag Safety and Anti-theft by jianghongl

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									                                                           Airbag Safety and Anti-theft



    Airbag Safety and Anti-theft
              It’s no secret that there is a market for stolen automobile parts. It’s
    no secret that people pay higher insurance premiums because of insurance
    fraud. Unfortunately, the market for stolen parts and incentives to commit
    fraud were enhanced when manufacturers began installing airbags in cars.
    However, two states, Colorado and New York, are taking steps to deter airbag
    theft, reduce insurance fraud and ensure that consumers get quality parts
    if their car is repaired.
              Colorado HB 97-1098 (LLS 97-0041.01) requires people to replace
    airbags in their motor vehicle when they have received payment from an
    insurance company on their claim that their motor vehicle’s airbag was
    stolen or deployed. The 1997 Colorado act enables insurance companies to
    inspect motor vehicles involved in such claims to verify whether the vehicle’s
    airbag system was stolen or deployed.
              Colorado’s law also prohibits motor vehicle repair shops from re-
    turning any replaced components of motor vehicle airbag systems to con-
    sumers.
              The act in this SSL volume is based on New York law. It sets up
    mechanisms to deter the theft of inflatable restraint systems (airbags) and
    other fraudulent activities which are occurring with increasing frequency
    in and around the replacement and installation of airbags after collisions.
    These include:
    • requirements that motor vehicle repair shops keep records that identify
       whether replacement airbag systems are from the original manufacturer
       or contain after-market parts or salvaged parts;
    • criteria to enable insurance companies and car owners to inspect repaired
       or replaced airbag systems; and
    • requirements that the police include in their accident reports informa-
       tion as to whether airbags inflated and deployed.

    Submitted as:
    New York
    CH 161, Laws of 1996 (SB 5766-C)
    Enacted into law, 1996.

    Suggested Legislation

    (Title, enacting clause, etc.)

1          Section 1. [Short Title.] This act may be cited as the “Airbag Safety
2   and Anti-theft Act.”


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  1              Section 2. [Payment of Claims Involving Inflatable Restraint Sys-
  2     tems.] Payment of a physical damage claim shall not be conditioned upon
  3     the repair of the automobile, provided, however, the insured shall replace
  4     any inflatable restraint system (airbag), as defined in subparagraph (b) of
  5     S 4.1.5.1 of standard 208 of part 571 of title 49 of the code of federal regula-
  6     tions, that inflated and deployed, or that was stolen, which is included in a
  7     physical damage or theft claim. The insurer may request that the automo-
  8     bile be made available for inspection whether or not the automobile is re-
  9     paired. The results of such inspection may form a basis for determining the
 10     value of the automobile in the event of a subsequent loss. If the automobile
 11     is repaired the insurer shall request the repair invoice and shall require
 12     the insured and the automobile repairer to certify, under penalties of per-
 13     jury, whether the applicable deductible has been paid to the automobile
 14     repairer, whether any repairs have been made and whether the repairs did
 15     not include all items allowed by the insurer.

   1             Section 3. [Definitions.]
   2             (a) An inflatable restraint system means an air bag, as defined in
   3    subparagraph (b) of S 4.1.5.1 of standard 208 of part 571 of title 49 of the
   4    code of federal regulations, that is designed and installed to be activated in
   5    a crash.
   6             (b) Readiness indicator light means an indicator monitoring the
   7    inflatable restraint system’s readiness and such light is clearly visible from
   8    the driver’s designated seating position.

   1            Section 4. [Safety Inspection.] In the case any passenger car manu-
   2    factured on or after [insert date,] during the course of a vehicle safety in-
   3    spection, as required by [insert citation] the readiness of the inflatable re-
   4    straint system, by means of the readiness indicator, shall be noted on a
   5    form that is supplied to the consumer. The system’s lack of readiness shall
   6    not be considered grounds for the vehicle to fail the safety inspection pro-
   7    vided for in [insert citation.]

  1              Section 5. [Motor Vehicle Repair Shops: Invoices and Work Inspec-
  2     tions.] All work done by a motor vehicle repair shop shall be recorded on an
  3     invoice and shall describe all service work done and parts supplied. If any
  4     used parts are supplied, the invoice shall clearly state that fact, such in-
  5     voice shall clearly state that fact. If any body parts are supplied to a vehicle
  6     with a gross vehicle weight not in excess of [eighteen thousand (18,000)]
  7     pounds, the invoice shall clearly state whether such parts were manufac-
  8     tured as original equipment parts for the vehicle, or were manufactured as
  9     non-original replacement parts or are used parts. [One (1)] copy of the in-
 10     voice shall be given to the customer and [one (1)] copy shall be retained by
 11     the motor vehicle repair shop. For the purposes of insuring that the repairs

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12   described on the work invoice have been performed, every customer and his
13   representative or a representative of an insurance company where such
14   company has paid or is liable to pay a claim for damage to such customer’s
15   motor vehicle shall have a right to inspect the repaired motor vehicle. Such
16   right of inspection shall also include the right to inspect all replaced parts
17   and components thereof, except warranty or exchange parts. Provided, how-
18   ever, the exception for warranty or exchange parts from the right of inspec-
19   tion shall not apply to replacement inflatable restraint systems. Any such
20   inspection by an insurer shall be made in a manner consistent with the
21   requirements of [insert citation]. The motor vehicle repair shop shall make
22   available to the customer, upon timely written demand, or for such work
23   authorized over the telephone, shall keep until the customer’s motor ve-
24   hicle is retrieved, all replaced parts, components or equipment excepting
25   any parts, components or equipment normally sold on an exchange basis or
26   subject to a warranty.

 1            Section 6. [Salvaged Inflatable Restraint Systems: Installation.]
 2             (a) In addition to the requirements of section 5 of this act, if an
 3   inflatable restraint system is replaced, the motor vehicle repair shop shall
 4   state on the repair invoice the name and tax identification number from
 5   whom such replacement inflatable restraint system was purchased. The
 6   vehicle repair shop shall, in the case of any salvaged inflatable restraint
 7   system installed, also state on the repair invoice the number of the vehicle
 8   dismantler’s registration number, the vehicle identification number of the
 9   vehicle from which the inflatable restraint system was salvaged and the
10   part number of the salvaged inflatable restraint system. The insurer and
11   the consumer shall receive a copy of the purchase invoice for such replace-
12   ment inflatable restraint systems.
13            (b) An inflatable system which has been activated in a crash or
14   stolen shall be replaced only with an inflatable restraint system newly manu-
15   factured for first-time use.
16             (c) Notwithstanding the provisions of paragraph (b) of this subdi-
17   vision, an inflatable restrain system may be replaced by one salvaged and
18   sold by a vehicle dismantler registered pursuant to [insert citation] pro-
19   vided, however, that the salvaged inflatable restraint system has been sold
20   in accordance with [insert citation.]
21            (d) Notwithstanding any other provisions of law to the contrary, a
22   consumer has the right to seek installation of a salvaged inflatable restraint
23   system as provided in paragraph (c) of this subdivision, provided however,
24   nothing shall require any facility to install a salvaged inflatable restraint
25   system. A salvage installation shall only be done with the specific authori-
26   zation of the customer. The invoice must prominently state, “Salvage inflat-
27   able restraint system.” No other terms such as “used” or “as is” shall be
28   used. The invoice must clearly state the terms of the warranty or guaran-

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 29     tee, if given, or state “No warranty or guarantee given.” A salvaged inflat-
 30     able restraint system must be of the exact same type as the unit with which
 31     the vehicle was originally equipped.
 32                        (f) On and after [insert date], in no case shall any inflatable
 33     restraint system be replaced with anything other than a newly manufac-
 34     tured inflatable restraint system or a salvaged inflatable restraint system
 35     certified according to standards established by a nationally recognized test-
 36     ing, engineering and research body as provided for in [insert citation.]

  1                  Section 7. [Log Books.] Each motor vehicle repair shop which
  2     either removes or installs inflatable restraint systems shall maintain a log
  3     book containing the following information: (a) the date of installation, (b)
  4     the vehicle identification number, license plate number, and make and model
  5     of the repaired vehicle, (c) the replacement inflatable restraint system’s
  6     part number, (d) in the case of a salvaged inflatable restraint system, (1)
  7     the vehicle identification number of the vehicle from which the replace-
  8     ment inflatable restraint system was salvaged, and (2) the name, tax iden-
  9     tification number, and registration number of the automobile dismantler
 10     from whom such salvaged inflatable restraint system was purchased, (e) in
 11     the case of a new replacement inflatable restraint system, the name and
 12     tax identification number of the supplier. Such records shall be maintained
 13     in a manner and form prescribed by the commissioner. Upon request of an
 14     agent of the commissioner or of any police officer and during its regular and
 15     usual business hours, the motor vehicle repair shop shall produce such
 16     records and permit said agent or police officer to examine them.

  1               Section 8. [Inspecting Deployed Airbags.] In accordance with regu-
  2     lations of the [superintendent] insurers shall, except where the insured is
  3     permitted to retain the automobile as part of the claim settlement, take
  4     possession of any salvage and the certificate of title, properly endorsed to
  5     them of private automobiles whenever a loss is determined by the insurer
  6     to be a total loss or a constructive total loss. Insurers, in disposing of the
  7     salvage, shall fully comply with the requirements of [insert citation.] An
  8     insurer shall also have the right, where a claim is filed for the replacement
  9     of an inflated and deployed or stolen inflatable restraint system (air bag),
 10     as defined in subparagraph (b) of S 4.1.5.1 of standard 208 of part 571 of
 11     title 49 of the code of federal regulations, to inspect the vehicle for which
 12     the claim is being filed to verify that the air bag did inflate and deploy or
 13     was stolen. The insurer shall also have the right to take possession of a
 14     deployed airbag.

   1              Section 9. [Major Vehicle Components.] Any records required by
   2    this section shall apply only to vehicles or parts of vehicles for which a
   3    certificate of title has been issued by the [commissioner] or which would be

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 4   eligible to have such a certificate of title issued. Every person required to be
 5   registered pursuant to this section shall maintain a record of all motor
 6   vehicles, trailers, and major component parts thereof, coming into his pos-
 7   session together with a record of the disposition of any such motor vehicle,
 8   trailer or part thereof and shall maintain proof of ownership for any motor
 9   vehicle, trailer or major component part thereof while in his possession. For
10   the purposes of this article an inflatable restraint system shall be a major
11   component part. Such records shall be maintained in a manner and form
12   prescribed by the [commissioner.] The [commissioner] may, regulate exempt
13   vehicles or major component parts of vehicles from all or a portion of the
14   record keeping requirements based upon the age of the vehicle if the [com-
15   missioner] deems that such record keeping requirements would not further
16   the purposes of the motor vehicle theft prevention program established by
17   [insert citation.] Upon request of an agent of the [commissioner] or of any
18   police officer and during his regular and usual business hours, a vehicle
19   dismantler shall produce such records and permit said agent or police of-
20   ficer to examine them and any vehicles or parts of vehicles which are sub-
21   ject to the record keeping requirements of this section and which are on the
22   premises. Upon request of any agent of the [commissioner] and during his
23   regular and usual business hours, a salvage pool, mobile car crusher or
24   itinerant vehicle collector shall produce such records and permit said agent
25   or police officer to examine them and any vehicles or parts of vehicles which
26   are subject to the record keeping requirements of this section and which
27   are on the premises. The failure to produce such records or to permit such
28   inspection on the part of any person required to be registered pursuant to
30   this section as required by this paragraph shall be a [class A misdemeanor.]

 1             Section 10. [Sale of Salvaged Inflatable Restraint Systems: Restric-
 2   tions.]
 3             (a) On and after [insert date,] prior to offering any salvaged inflat-
 4   able restraint system for sale such salvaged inflatable restraint system
 5   part identification number and the vehicle identification number of the
 6   vehicle from which the salvaged inflatable restraint system was taken shall
 7   be referred to a nationally recognized theft index bureau approved by the
 8   [commissioner,] in consultation with the [superintendent of insurance,] for
 9   the purposes of determining prior to sale that neither the salvaged inflat-
10   able restraint system nor the motor vehicle were stolen, as determined at
11   the time of inquiry. The sales invoice shall state the date and the result of
12   the inquiry to such theft index bureau.
13             (b) On and after [insert date,] prior to offering any salvaged inflat-
14   able restraint system for sale such salvaged inflatable restrain system shall
15   be certified according to standards established by a nationally recognized
16   testing, engineering and research body approved by the [commissioner] in
17   consultation with the [superintendent of insurance.]

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Airbag Safety and Anti-theft


  1              Section 11. [Reporting Deployment of Inflatable Restraint Systems.]
  2              (a) Every police or judicial officer to whom an accident resulting in
  3     injury to a person shall have been reported, pursuant to the foregoing pro-
  4     visions of state law, shall immediately investigate the facts, or cause the
  5     same to be investigated, and report the matter to the [commissioner] forth-
  6     with; provided, however, that the report of the accident is made to the police
  7     officer or judicial officer within [five (5)] days after such accident. Every
  8     coroner, or other official performing like functions, shall likewise make a
  9     report to the commissioner with respect to all deaths found to have been
 10     the result of motor vehicle or motorcycle accidents. Such report shall in-
 11     clude information on the width and length of trucks, tractors, trailers and
 12     semitrailers, which are in excess of [ninety-five (95)] inches in width or
 13     [thirty-four (34)] feet in length and which are involved in such accidents,
 14     whether such accident took place in a work area and whether it was being
 15     operated with an overweight or over dimension permit. Such report shall
 16     distinctly indicate and include information as to whether an inflatable re-
 17     straint system inflated and deployed.
 18              (b) The report required by this section shall be made in such form
 19     and number as the [commissioner] may prescribe. Such report shall in-
 20     clude information on the width and length of trucks, tractors, trailers and
 21     semitrailers, which are in excess of [ninety-five (95)] inches in width or
 22     [thirty-four (34)] feet in length and which are involved in such accidents,
 23     whether such accident took place in a work area and whether it was being
 24     operated with an overweight or over dimension permit. Such report shall
 25     distinctly indicate and include information as to whether an inflatable re-
 26     straint system inflated and deployed.

   1             Section 12. [Effective Date.] [Insert effective date.]




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