Expands definition of service contracts to include contracts made by a supplier or seller of a service for repair of cracks or chips in a motor vehicle windshield and for repair or removal of dents, dings or creases from a motor vehicle without affecting the existing paint finish.
TITLE OF BILL: An act to amend the insurance law, in relation to service contracts
PURPOSE: To allow a seller or supplier of windshield repair or paintless dent removal services to offer service contracts for the (i) repair chips or cracks in a motor vehicle windshield, but not including services that involve the replacement of the entire windshield, and (ii) repair or removal of dents, dings or creases from a motor vehicle without affecting the existing paint finish using paintless dent repair techniques, but not including services that involve the replacement of vehicle body panels, or sanding, bonding or painting.
SUMMARY OF PROVISIONS: Section 1. Amends the definition of "service contract" to include windshield repair and paintless dent removal services.
Section 2. Requires providers of service contracts, shall at least thirty days prior to the effective date of an initial provider fee, or change in a provider fee, file the amount of the provider fee with the superintendent and such filing shall be open to public inspection; and provided further that the provider fee shall not exceed the amount filed.
Section 3. Effective Date.
JUSTIFICATION: Service contracts are popular products with consumers because it gives them peace of mind, knowing that they have managed the cost of future repairs of their vehicles, Allowing the provision of windshield repair and paintless dent removal service contracts be sellers and suppliers of such services will give consumers the option of purchasing such coverage in lieu of bearing the risk of repair Through the purchase of these contracts, consumers will not have to bear the cost of repairing cracks or chips in their vehicle windshields, or removing small dents, dings or creases from their motor vehicles.
This bill also provides the superintendent of insurance with the necessary oversight to make sure that the cost of these service contracts are of a reasonable nature.
LEGISLATIVE HISTORY: S.2092/A.8206 of 2009-10
FISCAL IMPLICATIONS: None.
EFFECTIVE DATE: Immediately.
STATE OF NEW YORK ________________________________________________________________________ 4040 2011-2012 Regular Sessions IN SENATE March 15, 2011 ___________Introduced by Sen. SEWARD -- read twice and ordered printed, and when printed to be committed to the Committee on Insurance AN ACT to amend the insurance law, in relation to service contracts THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Subsection (k) of section 7902 of the insurance law, as amended by chapter 264 of the laws of 2006, is amended to read as follows: (k) "Service contract" means a contract or agreement, for a separate or additional consideration, for a specific duration to perform the repair, replacement or maintenance of property, or indemnification for repair, replacement or maintenance, due to a defect in materials or workmanship or wear and tear, with or without additional provision for indemnity payments for incidental damages, provided any such indemnity payment per incident shall not exceed the purchase price of the property serviced. Service contracts may include towing, rental and emergency road service, and may also provide for the repair, replacement or main- tenance of property for damage resulting from power surges and acci- dental damage from handling. Service contracts may also include contracts to repair, replace or maintain residential appliances and systems. Such term shall also mean a contract or agreement made (1) by or for the manufacturer or seller of a motor vehicle tire for repair or replacement of the tire or wheel as the result of damage arising from a road hazard, (2) BY OR FOR THE SUPPLIER OR SELLER OF A SERVICE FOR REPAIR OF CHIPS OR CRACKS IN A MOTOR VEHICLE WINDSHIELD, BUT NOT INCLUD- ING SERVICES THAT INVOLVE THE REPLACEMENT OF THE ENTIRE WINDSHIELD, AND (3) BY OR FOR THE SUPPLIER OR SELLER OF A SERVICE FOR REPAIR OR REMOVAL OF DENTS, DINGS OR CREASES FROM A MOTOR VEHICLE WITHOUT AFFECTING THE EXISTING PAINT FINISH USING PAINTLESS DENT REPAIR TECHNIQUES, BUT NOT INCLUDING SERVICES THAT INVOLVE THE REPLACEMENT OF VEHICLE BODY PANELS, OR SANDING, BONDING OR PAINTING.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD05426-01-1 S. 4040 2
S 2. Subsection (a) of section 7903 of the insurance law, as added by chapter 614 of the laws of 1997, is amended to read as follows: (a)
[Nothwithstanding]NOTWITHSTANDING any other provision of this chapter to the contrary, the marketing, sale, offering for sale, issu- ance, making, proposing to make and administration of service contracts by any provider, administrator or other person, shall be exempt from all other provisions of this chapter. A provider may, but is not required to, appoint an administrator or other designee to be responsible for any or all of the administration of service contracts and compliance with this article. NOTWITHSTANDING ANY OTHER PROVISION OF THIS ARTICLE, A PROVIDER OF A SERVICE CONTRACT, AS DEFINED IN PARAGRAPHS TWO AND THREE OF SUBSECTION (K) OF SECTION SEVEN THOUSAND NINE HUNDRED TWO OF THIS ARTICLE, SHALL, AT LEAST THIRTY DAYS PRIOR TO THE EFFECTIVE DATE OF AN INITIAL PROVIDER FEE, OR A CHANGE IN A PROVIDER FEE, FILE THE AMOUNT OF THE PROVIDER FEE WITH THE SUPERINTENDENT AND SUCH FILING SHALL BE OPEN TO PUBLIC INSPECTION; AND PROVIDED FURTHER THAT THE PROVIDER FEE SHALL NOT EXCEED THE AMOUNT FILED. S 3. This act shall take effect immediately.