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.

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S4040-2011 Actions

• Aug 17, 2012: SIGNED CHAP.409
• Aug 6, 2012: DELIVERED TO GOVERNOR
• May 31, 2012: returned to senate
• May 31, 2012: passed assembly
• May 30, 2012: ordered to third reading cal.626
• May 30, 2012: substituted for a3782a
• Mar 22, 2012: referred to insurance
• Mar 22, 2012: DELIVERED TO ASSEMBLY
• Mar 22, 2012: PASSED SENATE
• Mar 7, 2012: ADVANCED TO THIRD READING
• Mar 6, 2012: 2ND REPORT CAL.
• Mar 5, 2012: 1ST REPORT CAL.280
• Jan 4, 2012: REFERRED TO INSURANCE
• Jan 4, 2012: returned to senate
• Jan 4, 2012: died in assembly
• Jun 7, 2011: referred to insurance
• Jun 7, 2011: DELIVERED TO ASSEMBLY
• Jun 7, 2011: PASSED SENATE
• May 16, 2011: AMENDED ON THIRD READING 4040A
• Mar 23, 2011: ADVANCED TO THIRD READING
• Mar 22, 2011: 2ND REPORT CAL.
• Mar 21, 2011: 1ST REPORT CAL.241
• Mar 15, 2011: REFERRED TO INSURANCE

S4040-2011 Meetings

Insurance: Mar 21, 2011

S4040-2011 Calendars

Floor Calendar: Mar 22, 2011 , Floor Calendar: Mar 23, 2011 , Floor Calendar: Mar 24, 2011 , Floor Calendar: Mar 28, 2011 , Floor Calendar: Mar 29, 2011 , Floor Calendar: Mar 30, 2011 , Floor Calendar: Mar 31, 2011 , Floor Calendar: Apr 4, 2011 , Floor Calendar: Apr 5, 2011 , Floor Calendar: Apr 6, 2011 , Floor Calendar: Apr 11, 2011 , Floor Calendar: Apr 12, 2011 , Floor Calendar: Apr 13, 2011 , Floor Calendar: May 2, 2011 , Floor Calendar: May 3, 2011 , Floor Calendar: May 4, 2011 , Floor Calendar: May 9, 2011 , Floor Calendar: May 10, 2011 , Floor Calendar: May 11, 2011 , Floor Calendar: May 16, 2011

S4040-2011 Votes

S4040-2011 Memo

BILL NUMBER:S4040

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.

S4040-2011 Text

                      S T A T E   O F   N E W   Y O R K
  ________________________________________________________________________

                                    4040

                         2011-2012 Regular Sessions

                              I N  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.