S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         3782
                              2011-2012 Regular Sessions
                                 I N  A S S E M B L Y
                                   January 27, 2011
                                      ___________
       Introduced  by M. of A. MORELLE -- read once and referred to the Commit-
         tee on Corporations, Authorities and Commissions
       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:
    1    Section  1.  Subsection  (k)  of section 7902 of the insurance law, as
    2  amended by chapter 264 of the laws  of  2006,  is  amended  to  read  as
    3  follows:
    4    (k)  "Service  contract" means a contract or agreement, for a separate
    5  or additional consideration, for a  specific  duration  to  perform  the
    6  repair,  replacement  or maintenance of property, or indemnification for
    7  repair, replacement or maintenance, due to  a  defect  in  materials  or
    8  workmanship  or  wear and tear, with or without additional provision for
    9  indemnity payments for incidental damages, provided any  such  indemnity
   10  payment per incident shall not exceed the purchase price of the property
   11  serviced.    Service  contracts may include towing, rental and emergency
   12  road service, and may also provide for the repair, replacement or  main-
   13  tenance  of  property  for  damage resulting from power surges and acci-
   14  dental  damage  from  handling.  Service  contracts  may  also   include
   15  contracts  to  repair,  replace  or  maintain residential appliances and
   16  systems. Such term shall also mean a contract or agreement made  (1)  by
   17  or  for the manufacturer or seller of a motor vehicle tire for repair or
   18  replacement of the tire or wheel as the result of damage arising from  a
   19  road  hazard,  (2)  BY  OR  FOR  THE SUPPLIER OR SELLER OF A SERVICE FOR
   20  REPAIR OF CHIPS OR CRACKS IN A MOTOR VEHICLE WINDSHIELD, BUT NOT INCLUD-
   21  ING SERVICES THAT INVOLVE THE REPLACEMENT OF THE ENTIRE WINDSHIELD,  AND
   22  (3)  BY OR FOR THE SUPPLIER OR SELLER OF A SERVICE FOR REPAIR OR REMOVAL
   23  OF DENTS, DINGS OR CREASES FROM A MOTOR VEHICLE  WITHOUT  AFFECTING  THE
   24  EXISTING  PAINT  FINISH  USING PAINTLESS DENT REPAIR TECHNIQUES, BUT NOT
   25  INCLUDING SERVICES THAT INVOLVE THE REPLACEMENT OF VEHICLE BODY  PANELS,
   26  OR SANDING, BONDING OR PAINTING.
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD05426-01-1
       A. 3782                             2
    1    S  2. Subsection (a) of section 7903 of the insurance law, as added by
    2  chapter 614 of the laws of 1997, is amended to read as follows:
    3    (a)  [Nothwithstanding]  NOTWITHSTANDING  any  other provision of this
    4  chapter to the contrary, the marketing, sale, offering for  sale,  issu-
    5  ance,  making, proposing to make and administration of service contracts
    6  by any provider, administrator or other person, shall be exempt from all
    7  other provisions of this chapter. A provider may, but  is  not  required
    8  to, appoint an administrator or other designee to be responsible for any
    9  or  all  of  the administration of service contracts and compliance with
   10  this article.  NOTWITHSTANDING ANY OTHER PROVISION OF  THIS  ARTICLE,  A
   11  PROVIDER  OF  A SERVICE CONTRACT, AS DEFINED IN PARAGRAPHS TWO AND THREE
   12  OF SUBSECTION (K) OF SECTION SEVEN THOUSAND NINE  HUNDRED  TWO  OF  THIS
   13  ARTICLE,  SHALL,  AT LEAST THIRTY DAYS PRIOR TO THE EFFECTIVE DATE OF AN
   14  INITIAL PROVIDER FEE, OR A CHANGE IN A PROVIDER FEE, FILE THE AMOUNT  OF
   15  THE  PROVIDER  FEE WITH THE SUPERINTENDENT AND SUCH FILING SHALL BE OPEN
   16  TO PUBLIC INSPECTION; AND PROVIDED FURTHER THAT THE PROVIDER  FEE  SHALL
   17  NOT EXCEED THE AMOUNT FILED.
   18    S 3. This act shall take effect immediately.