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NE LB111

NE LB111
Prohibit certain actions of insurers relating to repairing motor vehicles and nonoriginal equipment manufacturer parts


summary

Introduced
01/10/2025
In Committee
01/14/2025
Crossed Over
Passed
Dead

Introduced Session

109th Legislature

Bill Summary

A BILL FOR AN ACT relating to insurance; to define terms; to prohibit certain actions of insurers relating to repairing motor vehicles and nonoriginal equipment manufacturer parts; to require insurers to provide notice to consumers as prescribed; and to provide a penalty.

AI Summary

This bill establishes new regulations for insurance companies regarding motor vehicle repairs and the use of non-original equipment manufacturer (non-OEM) parts. The bill defines key terms such as "consumer," "insurer," and "part," and sets forth several important requirements for insurers. Insurers are prohibited from requiring the use of non-OEM parts that lack proper manufacturer identification, and they must ensure that any non-OEM parts are equal in quality, fit, and performance to original equipment manufacturer parts. The bill mandates that insurers must provide written notice to consumers about the use of non-OEM parts and obtain the consumer's written consent before using such parts in repairs. Additionally, insurers cannot require consumers to pay a price difference if they choose to use original equipment manufacturer parts. For vehicles less than 36 months old, insurers are prohibited from requiring aftermarket parts in repairs. The bill also allows insurers to include a specific notice in policies for vehicles over 36 months old that explains the potential use of aftermarket parts. Any violation of these provisions is classified as a Class I misdemeanor, which could result in legal penalties for the insurer.

Committee Categories

Business and Industry

Sponsors (1)

Last Action

Title printed. Carryover bill (on 01/07/2026)

bill text


bill summary

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