Bill Text: AZ HB2329 | 2015 | Fifty-second Legislature 1st Regular | Introduced
Bill Title: Service contracts; vehicle protection products
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2015-01-28 - Referred to House INS Committee [HB2329 Detail]
Download: Arizona-2015-HB2329-Introduced.html
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REFERENCE TITLE: service contracts; vehicle protection products |
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State of Arizona House of Representatives Fifty-second Legislature First Regular Session 2015
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HB 2329 |
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Introduced by Representative Fann
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AN ACT
Amending sections 20‑1095 and 20‑1099, Arizona Revised Statutes; relating to motor vehicles.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 20-1095, Arizona Revised Statutes, is amended to read:
20-1095. Definitions
In this article, unless the context otherwise requires:
1. "Consumer" means a buyer other than for purposes of resale of any consumer product, any person to whom the product is transferred during the duration of an implied or written warranty or service contract applicable to the product and any other person who is entitled by the terms of the warranty or service contract or under applicable federal or state law to enforce against the warrantor or service company the obligations of the warranty or service contract. A consumer also means the buyer or seller of residential property.
2. "Consumer product" means any tangible personal property which that is distributed in commerce and which that is normally used solely for personal, family or household purposes including any such property intended to be attached to or installed in any real property without regard to whether it is so attached or installed.
3. "Home warranty or home protection contract" means a service contract as defined in paragraph 8, subdivision (b) (a), item (ii) of this section.
4. "Mechanical reimbursement insurance" means an insurance policy issued to a motor vehicle dealer to insure the performance of a motor vehicle service contract to a consumer if the motor vehicle dealer or the service contract administrator becomes insolvent or ceases to do business. All such policies shall provide that all purchasers of motor vehicle service contracts are covered if the motor vehicle dealer, the service contract administrator or the insurer becomes insolvent or ceases to do business.
5. "Motor vehicle service contract program" means contractual documents, including service contract forms, claim forms and other forms, used in connection with the sale of service contracts by motor vehicle dealers.
6. "Residential property" means a house, townhouse, condominium or other habitable structure consisting of no more than four units which that is used principally as a residence.
7. "Service company" means any person who performs or arranges to perform services pursuant to a service contract which that the person issues.
8. "Service contract":
(a) Means a written contract for a prepaid separately stated consideration to perform, over a fixed period of time or for a specified duration, services relating to the maintenance or repair, including replacement, of any of the following:
(a) (i) A consumer product.
(b) (ii) All or any part of the structural components, the appliances or the electrical, plumbing, heating, cooling or air conditioning systems of residential property.
(iii) Tires or wheels on a motor vehicle that are damaged as a result of coming into contact with road hazards.
(iv) Dents, dings or creases on a motor vehicle that can be repaired using the process of paintless dent removal without affecting the existing paint finish and without replacing vehicle body panels, sanding, bonding or painting.
(v) Chips or cracks in or the replacement of motor vehicle windshields as a result of damage caused by road hazards.
(vi) A motor vehicle key or key fob if the key or key fob becomes inoperable or is lost or stolen.
(b) Does not include the repair of damage to or replacement of the interior surfaces or exterior paint or finish of a motor vehicle unless the coverage is provided in connection with the sale of a vehicle protection product as defined in section 20‑1099.
9. "Service contract administrator" means an entity which that agrees to provide contract forms, process claims and procure insurance for and on behalf of a motor vehicle dealer in the performance of the obligations pursuant to the motor vehicle service contract but which that may not itself perform actual repairs.
10. "Warranty" means:
(a) Any written affirmation by a manufacturer or seller of fact or written promise made in connection with the sale of a consumer product which that relates to the nature of the material or workmanship and affirms or promises that the material or workmanship is free of defects or will meet a specified level of performance over a specified period of time.
(b) Any undertaking by a manufacturer or seller in writing in connection with the sale of a consumer product to refund, repair, replace or take other remedial action with respect to such a product if the product fails to meet the specifications set forth in the undertaking, which written affirmation, promise or undertaking becomes part of the basis of the bargain for purposes other than resale of such product and if there is no separate identifiable charge to the consumer.
Sec. 2. Section 20-1099, Arizona Revised Statutes, is amended to read:
20-1099. Definitions
In this article, unless the context otherwise requires:
1. "Administrator" means a third party other than the warrantor who is designated by the warrantor to be responsible for the administration of vehicle protection product warranties.
2. "Incidental costs" means expenses that are specified in the vehicle protection product warranty, that are incurred by the warranty holder relating and that relate to the failure of the vehicle protection product to perform as provided in the warranty. Incidental costs may include insurance policy deductibles, rental vehicle charges, the difference between the actual value of the stolen vehicle at the time of theft and the cost of a replacement vehicle, sales taxes, registration fees, transaction fees and mechanical inspection fees.
3. "Vehicle protection product":
(a) Means a vehicle protection substance, device, system or service that:
(a) (i) Is installed on or applied to a vehicle.
(b) (ii) Is designed to prevent loss or damage to a vehicle from a specific cause.
(c) (iii) Includes a written warranty by a warrantor that provides if the vehicle protection product fails to prevent loss or damage to a vehicle from a specific cause, the warranty holder shall be paid specified incidental costs by the warrantor as a result of the failure of the vehicle protection product to perform pursuant to the terms of the warranty.
(d) (iv) Covers the warrantor's liability with a warranty reimbursement insurance policy.
(b) Vehicle protection product Includes protective chemicals, alarm systems, body part marking products, steering locks, window etch products, pedal and ignition locks, fuel and ignition kill switches and electronic, radio and satellite tracking devices.
(c) Does not include fuel additives, oil additives or other chemical products applied to the engine, transmission or fuel system of a motor vehicle.
4. "Vehicle protection product warrantor" or "warrantor" means a person who is contractually obligated to the warranty holder under the terms of the vehicle protection product warranty agreement. Warrantor does not include an authorized insurer.
5. "Warranty reimbursement insurance policy" means a policy of insurance issued to the vehicle protection product warrantor to pay on behalf of the warrantor all covered contractual obligations incurred by the warrantor under the terms and conditions of the vehicle protection product warranty. An insurer authorized to do business in this state that has filed its policy form with the department shall issue the warranty reimbursement insurance policy.
