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As Introduced
136th
General Assembly
Regular
Session
H. B. No. 636
2025-2026
Representative Johnson
To
amend section 1345.81
and to enact sections 3937.51, 3937.52, 3937.53, and 3937.54
of the Revised Code
to
require certain disclosures, allow consumer choice concerning the use
of aftermarket motor vehicle parts, to require the offering of
coverage for original equipment manufacturer parts, and to name this
act the Auto Insurance Transparency Act.
BE
IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section
1.
That
section 1345.81
be amended and sections 3937.51, 3937.52, 3937.53, and 3937.54
of the Revised Code be
enacted
to
read as follows:
Sec.
1345.81.
(A)
As used in this section:
(1)
"
Aftermarket
crash
Replacement
part"
means a
replacement
for any of the nonmechanical sheet metal or plastic parts that
generally constitute the exterior
part
or component
of
a motor vehicle
,
including inner and outer panels
designed to replace a similar part or component as originally
equipped by the manufacturer of a motor vehicle
.
(2)
"Nonoriginal equipment manufacturer aftermarket
crash
replacement
part"
or "non-OEM aftermarket
crash
replacement
part"
means any
aftermarket
crash
replacement
part
that is not made by or for the manufacturer of the motor vehicle.
(3)
"Repair facility" means any motor vehicle dealer, garage,
body shop, or other commercial entity that undertakes the repair
of
a motor vehicle
or
the
replacement
of
those
parts that generally constitute the exterior of a
motor
vehicle
parts
.
(4)
"Installer" means any individual who actually performs the
work of replacing or repairing parts of a motor vehicle.
(5)
"Insurer" means any individual serving as an agent or
authorized representative of an insurance company, involved with the
coverage for repair of the motor vehicle in question.
(6)
"Original equipment manufacturer replacement part" and "OEM
replacement part" mean any replacement part that is made by or
for the manufacturer of the motor vehicle.
(7)
"Automobile insurance policy" has the same meaning as in
section 3937.30 of the Revised Code.
(8)
"Motor vehicle dealer" has the same meaning as in section
4517.01 of the Revised Code.
(B)
Any insurer who provides an estimate for the repair of a motor
vehicle based in whole or in part upon the use of any non-OEM
aftermarket
crash
replacement
part
in the repair of the motor vehicle and any repair facility or
installer who intends to use a non-OEM aftermarket
crash
replacement
part
in the repair of a motor vehicle shall comply with the following
provisions, as applicable:
(1)
(1)(a)
If the person requesting the repair chooses to receive a written
estimate, the insurer, repair facility, or installer providing the
estimate shall
identify,
clearly
include
in
the written estimate
,
all of the following:
(i)
Clear identification of
each non-OEM aftermarket
crash
replacement
part
and shall contain a written
;
(ii)
An indication of whether OEM aftermarket replacement parts are
readily available and, if so, whether using OEM aftermarket
replacement parts would require the repair to be completed by another
repair facility or installer;
(iii)
A notice that the person requesting the repair has the right to
choose OEM replacement parts, even if those parts are not fully
covered by the person's automobile insurance policy, as long as the
person agrees to pay the difference between the cost of the OEM
replacement parts and the maximum policy coverage for the same part
sourced from a non-OEM aftermarket replacement parts manufacturer;
(iv)
A
notice
with the following language in ten-point or larger type: "This
estimate has been prepared based upon the use of one or more
aftermarket
crash
replacement
parts
supplied by a source other than the manufacturer of your motor
vehicle. Warranties applicable to these aftermarket
crash
replacement
parts
are provided by the parts manufacturer or distributor rather than by
your own motor vehicle manufacturer."
Receipt
(b)
Receipt
and
approval of the written estimate shall be acknowledged by the
signature of the person requesting the repair at the bottom of the
written estimate.
(2)
If the person requesting the repair chooses to receive an oral
estimate or no estimate at all, the insurer, repair facility, or
installer providing the estimate or seeking the person's approval for
repair work to commence shall furnish or read to the person a written
notice as described in division (B)(1) of this section at the time
that the oral estimate is given or when the person requesting the
repair gives approval for the repair work to commence. If the person
has chosen to receive an oral estimate or no estimate, the written
notice described in division (B)(1) of this section shall be provided
with the final invoice for the repair.
(C)
Any non-OEM aftermarket
crash
replacement
part
manufactured after October 16, 1990,
that
replaces any of the nonmechanical sheet metal or plastic parts that
generally constitute the exterior of a motor vehicle, including inner
and outer panels,
shall
have permanently affixed thereto, or inscribed thereon, prior to the
installation of the part, the business name or logo of the
manufacturer.
Whenever
practical, the location of the affixed or inscribed information upon
the part shall ensure that the information shall be accessible after
installation.
(D)
An insurer, repair facility, or installer may use a salvage motor
vehicle part in the repair of a motor vehicle, if the salvage motor
vehicle part is of a like kind and quality to the part in need of
repair and is sourced from a salvage motor vehicle dealer licensed
under Chapter 4738. of the Revised Code.
(E)
If
an automobile insurance policy does not cover OEM replacement parts,
the insurer shall allow a claimant to complete the repair using OEM
replacement parts so long as the claimant pays any difference between
the cost of OEM replacement parts and the maximum policy coverage for
the same part sourced from a non-OEM aftermarket replacement part
manufacturer.
(F)
Any violation of this section by an insurer is an unfair and
deceptive act or practice in the business of insurance, as defined in
section 3901.21 of the Revised Code, and is subject to, in addition
to the penalties prescribed in section 3901.22 of the Revised Code,
disciplinary action under Chapter 3937. of the Revised Code.
(G)
Any
other
violation
of this section in connection with a consumer transaction as defined
in section 1345.01 of the Revised Code is an unfair and deceptive act
or practice as defined by section 1345.02 of the Revised Code.
Sec.
3937.51.
As
used in sections 3937.51 to 3937.54 of the Revised Code:
(A)
"Automobile insurance policy" has the same meaning as in
section 3937.30 of the Revised Code.
(B)
"Installer," "original equipment manufacturer
replacement part," "OEM replacement part," and "repair
facility" have the same meanings as in section 1345.81 of the
Revised Code.
(C)(1)
"Original equipment manufacturer part repair coverage" and
"OEM part repair coverage" mean any coverage, whether part
of an automobile insurance policy, or which is supplemental to an
existing automobile insurance policy, for the cost of using OEM
replacement parts in the repair of a covered vehicle.
(2)
"Original equipment manufacturer part repair coverage" and
"OEM part repair coverage" includes any added costs
associated with the use of OEM replacement parts or when using OEM
replacement parts would require the repair to be completed by another
repair facility or installer.
Sec.
3937.52.
Every
insurance company delivering, issuing for delivery, or renewing an
automobile insurance policy in this state that includes coverage for
damages to, or the destruction of, the motor vehicle specifically
identified in the policy shall clearly and conspicuously offer to the
insured an option for the automobile insurance policy to include OEM
part repair coverage.
Sec.
3937.53.
(A)
Nothing in sections 3937.51 to 3937.54 of the Revised Code shall be
construed to require an automobile insurance policy to include OEM
part repair coverage if a policyholder does not elect to include OEM
part repair coverage with the automobile insurance policy in
accordance with section 3937.52 of the Revised Code.
(B)
Nothing in sections 3937.51 to 3937.54 of the Revised Code shall be
construed to prohibit the actuarially justified adjustment of a
premium for an automobile insurance policy when a policyholder elects
to include OEM part repair coverage with the automobile insurance
policy.
Sec.
3937.54.
Any
violation of section 3937.52 of the Revised Code is an unfair and
deceptive act or practice in the business of insurance under sections
3901.19 to 3901.26 of the Revised Code. If the superintendent, by
written order, finds that any person is about to engage, is engaging,
or has engaged in a violation of this section, the superintendent may
impose any or all of the administrative remedies set forth in
divisions (D)(1) to (5) of section 3901.22 of the Revised Code. If
the superintendent finds that the violation was due to gross or
willful misconduct, the superintendent may order that person to
reimburse any customer harmed by the violation or violations,
including reimbursement or payment of insurance claims for which a
loss occurred as a result of a customer's reliance upon a policy
summary containing any false, misleading, or deceptive representation
or statement.
Section
2.
That
existing section 1345.81 of the Revised Code is hereby repealed.
Section
3.
This
act shall be known as the Auto Insurance Transparency Act.