NAIC MODEL RULES GOVERNING AFTERMARKET PARTS MODEL REGULATION


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PRESS RELEASE
For Immediate Release
January 1, 2009

Contact: Geoff Crane
Phone Direct: 1-901-398-5759
E-Mail geoff@diamondstandardparts.com

NAIC (National Association of Insurance Commissioners) Taps Diamond Standard Brand Parts to Review & Propose Changes to National Model Law Regarding Aftermarket Part Quality Requirements

Memphis, TN – October 23, 2008 – The NAIC (National Association of Insurance Commissioners) requested the Diamond Standard Brand Alternative Safety Part Division of Reflexxion Automotive and Production Bumper Stampings review its model law governing Aftermarket Parts model regulations which are considered outdated since publish and provide input and recommendations regarding its wording designed to permit the continued use by insurers of non-OEM parts with acceptable safeguards to insureds that such parts are not inferior to the parts that existed on their vehicles prior to the accident.

“We welcome this opportunity to assist and serve the industry to create updated regulations to include Safety parts and better and more stringently define quality and performance of the part to assure the part being installed will indeed restore the vehicle to its predamaged condition and to the standard which came on the vehicle initially…the OEM part being that standard”, said Geoff Crane, Business Development Manager, Diamond Standard Brand Division.

No where is the need for equivalency or like kind quality of performance and function greater than in safety parts which go to restore the vehicle’s collision management system. “As OEM moved to high strength steel, ultra high strength steel, even advanced strength steel use in parts such as bumper reinforcements, some Offshore Aftermarket manufactures have elected to substitute low cost carbon steel” Crane said. The same holds true with substituting low cost polystyrene foam for OEM high density EPP polypropylene for energy absorbers. “These parts have been tested and fail federal standards of crashworthiness, do not meet the performance of OEM or Diamond Standard Alternative Safety parts, and would be a violation of use in any state with regulations calling for OEM equivalency or like kind quality and performance to the part they replace” according to Crane.

“Today, only 20 states have regulations speaking to equivalency or like kind quality and performance and we are committed to help all states to adopt such language as it is a matter of safety” Crane stated. We recently had the privilege of meeting with the Tennessee State Commissioner’s Office to discuss the inclusion of Safety parts covered by regulations and the safety issue where it was verbally agreed the need for strengthening Tennessee’s State Regulations. The need for a broad review of all regulations is needed. “All State and NAIC regulations regarding Aftermarket Parts are available at www.diamondstandardparts.com under State Regs – Aftermarket Parts” said Crane.

Followup, January 16, 2009:

The interest in this story has been phenomenal to say the least. It speaks to the strength of Collision Week as a leading source of information and news that impacts everyone concerned with safety and quality in the marketplace. - Geoff Crane

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