california.jpg

California Requirements Regulations
California Codes/ Business and Professions Code/ Section 9875 - 9875.2, Barclays Official California Code of Regulations/ Title 10 Investment/ Chapter 5 Insurance Commissioner/ Subchapter 7.5 Unfair or Deceptive Acts or Practices in the Business of Insurance/ Aritcle 1 Fair Claims Settlement Practices Regulations Disclosure and Equal in Quality to OEM Parts

No insurer shall require the use of non-original equipment manufacturer replacement crash parts in the repair of an automobile unless all of the following conditions are met. Specifically, the new regulations set forth that:


  • The parts are at least equal to the original equipment manufacturer parts in terms of kind, quality, safety, fit and performance (compliant part)


  • The insurer warrants that such parts are at least equal to the original equipment manufacturer parts in terms of kind, quality, safety, fit and performance and disclose this in writing, in any estimate prepared by or for the insurer


  • The insurer specifying the use of non-original manufacturer parts shall pay the cost of any modifications to the parts that may become necessary to effect the repair


  • All original and non-original manufacturer parts, manufactured after the effective date of this subdivision when supplied by repair shops shall carry sufficient permanent, non-removable identification so as to identify the manufacturer; accessible to the greatest extent possible after installation (compliant part)


  • If an insurer specifying use of non-original parts has knowledge that a part is not equal to the original part in terms of kind, quality, safety, fit and performance or does not otherwise comply it shall immediately cease requiring use of the part and shall, within thirty (30) days, notify the distributor of the non-compliant aspects


  • Insurer shall pay the cost associated with returning the non-compliant part and the cost to remove and replace the non-original equipment with a compliant nonoriginal or original equipment part

© Diamond Standard Parts, LLC