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.