Ohio Association battling administrative code changes

PATASKALA, Ohio — According to the Ohio Body Shop Owners Association Inc. (OBOA), Ohio Administrative code 3901-1-54, which tells insurance companies how they have to settle claims, expired at the end of 2006, and is up for renewal with the new congress meeting in February. 

The outgoing Department of Insurance (DOI) Commissioner proposed changes to the law at the last minute before the new administration came in. If left unchallenged, the changes will be adopted and become law. The major change proposed is to the definition of LKQ parts. 

“For all of our lives, LKQ has meant ‘used’ — OEM-manufactured used parts and/or assemblies,” says OBOA Executive Director Dave Murdock. “Now the DOI wants LKQ to mean anything that's not a new-OEM part, including aftermarket parts.Here's the problem: As Ohio law reads right now, everyone — insurers and shops — who writes an estimate in the State of Ohio must obtain the signed approval of the titled vehicle owner on the bottom of the estimate before aftermarket parts may legally be installed on any car, per 1345.81 OAC. Not so with LKQ parts.” 

That OBOA feels that if this is allowed to pass, it would let insurers get around the disclosure and vehicle owner approval laws and sneak aftermarket parts onto unsuspecting owners without their knowledge or consent, which, according to Murdock, is consumer fraud and a violation of consumer rights. 

A public hearing will be held in Columbus Jan. 29 and the OBOA is trying to spread the word. They are calling for body shop owners to attend the hearing and make their voices heard.