Bill Text: NY A03782 | 2011-2012 | General Assembly | Amended

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Bill Title: 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.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2012-05-30 - substituted by s4040a [A03782 Detail]

Download: New_York-2011-A03782-Amended.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                        3782--A
                              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 -- reference  changed
         to  the  Committee on Insurance -- committee discharged, bill amended,
         ordered reprinted as amended and recommitted to said committee
       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
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD05426-03-1
       A. 3782--A                          2
    1  INCLUDING SERVICES THAT INVOLVE THE REPLACEMENT OF VEHICLE BODY  PANELS,
    2  OR SANDING, BONDING OR PAINTING.
    3    S  2. Subsection (a) of section 7903 of the insurance law, as added by
    4  chapter 614 of the laws of 1997, is amended to read as follows:
    5    (a) [Nothwithstanding] NOTWITHSTANDING any  other  provision  of  this
    6  chapter  to  the contrary, the marketing, sale, offering for sale, issu-
    7  ance, making, proposing to make and administration of service  contracts
    8  by any provider, administrator or other person, shall be exempt from all
    9  other  provisions  of  this chapter. A provider may, but is not required
   10  to, appoint an administrator or other designee to be responsible for any
   11  or all of the administration of service contracts  and  compliance  with
   12  this  article.    NOTWITHSTANDING ANY OTHER PROVISION OF THIS ARTICLE, A
   13  PROVIDER OF A SERVICE CONTRACT, AS DEFINED IN PARAGRAPHS TWO  AND  THREE
   14  OF  SUBSECTION  (K)  OF  SECTION SEVEN THOUSAND NINE HUNDRED TWO OF THIS
   15  ARTICLE, SHALL, AT LEAST THIRTY DAYS PRIOR TO THE EFFECTIVE DATE  OF  AN
   16  INITIAL  PROVIDER FEE, OR A CHANGE IN A PROVIDER FEE, FILE THE AMOUNT OF
   17  THE PROVIDER FEE WITH THE SUPERINTENDENT AND SUCH FILING SHALL  BE  OPEN
   18  TO  PUBLIC  INSPECTION; AND PROVIDED FURTHER THAT THE PROVIDER FEE SHALL
   19  NOT EXCEED THE AMOUNT FILED.  THE REQUIREMENT TO FILE THE AMOUNT OF  THE
   20  PROVIDER  FEE WITH THE SUPERINTENDENT IN THIS SUBSECTION SHALL NOT APPLY
   21  TO FEES SET FORTH IN ANY AGREEMENT TO WHICH AN AUTHORIZED INSURER  IS  A
   22  PARTY.
   23    S 3. This act shall take effect immediately.