NCOIL responds to WMABA position on salvage airbags

The National Conference of Insurance Legislators (NCOIL) responded to a Feb. 9 article in ABRN entitled “WMABA urges repairers to oppose salvage airbag bill in Maryland.” The following unedited letter was signed by Rep. Robert Damron of Kentucky, who is the NCOIL president.

Although we do not wish to comment on specific Maryland activity, we do wish to weigh in on some general statements in the article regarding the NCOIL model law on which the Maryland bill was based.
 
The Model Act Regarding Auto Airbag Fraud, adopted overwhelmingly by NCOIL on November 22, 2009, neither encourages nor discourages the use of salvaged airbags. Rather, in adopting the model law, legislators set forth a comprehensive approach to fighting airbag fraud – an approach that acknowledges today’s installation, however frequent or infrequent, of both salvaged and new original equipment manufacturer (OEM) parts. The purpose of our model is to ensure that any airbag installed in a vehicle is safe.  
 

NCOIL legislators who developed the model act – through five months of conference calls, special meetings, and extended debates – believed that to exclude mention of salvaged airbags would be to create a sizeable loophole through which fraud would be allowed, as the reality is that salvaged airbags are being used in states across the country. Our inclusion of salvaged airbags means that, in the majority of states, use of these parts would be regulated for the first time.
 
Responding to concerns over salvaged safety, our model requires permanent, dashboard disclosure whenever such an airbag is installed. We have a drafting note that promotes state safety protocols that ensure the use of only airbags – including salvaged – that meet specific criteria. Combined with extensive disclosure and reporting standards, as well as tough penalties, our model’s awareness of salvaged airbags offers legislatures a sound basis for strong state laws. 
 
We appreciate the input of the auto-repair industry in our policy debates and look forward to continued discussions in the months ahead.