NCOIL committee approves model airbag fraud act

The National Conference of Insurance Legislators’ (NCOIL) Property and Casualty Insurance Committee passed the Model Act Regarding Auto Airbag Fraud. The model act was amended to include restrictions on the use of salvage airbags as an option for airbag replacement.

A permanent sticker must be placed on the dashboard of the vehicle stating that the vehicle contains a salvage airbag. This model legislation is a recommendation only to state legislatures.

Members of the Automotive Service Association (ASA) contacted their state legislators who are members of NCOIL’s Property and Casualty Insurance Committee in opposition to the salvage airbag provisions of the model act.

NCOIL has delayed action on the Model Act Regarding Motor Vehicle Crash Parts and Repair until its next meeting. ASA also opposes this proposed legislation.