Bill Text: NY A07210 | 2021-2022 | General Assembly | Introduced

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Bill Title: Clarifies certain provisions related to excess use or wear and tear of a vehicle leased for personal use for purposes of service contracts.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2022-01-05 - referred to insurance [A07210 Detail]

Download: New_York-2021-A07210-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          7210

                               2021-2022 Regular Sessions

                   IN ASSEMBLY

                                     April 29, 2021
                                       ___________

        Introduced  by  M.  of  A.  ZEBROWSKI  --  read once and referred to the
          Committee on Insurance

        AN ACT to amend the insurance law, in  relation  to  clarifying  certain
          provisions  related to excess use or wear and tear of a vehicle leased
          for personal use for purposes of 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  separately amended by chapter 247 of the laws of 2019 and section  1  of
     3  subpart  Q  of  part XX of chapter 55 of the laws of 2020, is amended to
     4  read as follows:
     5    (k) "Service contract" means a contract or agreement, for  a  separate
     6  or  additional  consideration,  for  a  specific duration to perform the
     7  repair, replacement or maintenance of property, or  indemnification  for
     8  repair,  replacement  or  maintenance,  due  to a defect in materials or
     9  workmanship or wear and tear, with or without additional  provision  for
    10  indemnity  payments  for incidental damages, provided any such indemnity
    11  payment per incident shall not exceed the purchase price of the property
    12  serviced.  Service contracts may include towing,  rental  and  emergency
    13  road  service, and may also provide for the repair, replacement or main-
    14  tenance of property for damage resulting from  power  surges  and  acci-
    15  dental   damage  from  handling.  Service  contracts  may  also  include
    16  contracts to repair, replace  or  maintain  residential  appliances  and
    17  systems.  Such  term shall also mean a contract or agreement made (1) by
    18  or for the manufacturer or seller of a motor vehicle tire for repair  or
    19  replacement  of the tire or wheel as the result of damage arising from a
    20  road hazard, (2) by or for the supplier  or  seller  of  a  service  for
    21  repair of chips or cracks in a motor vehicle windshield, but not includ-
    22  ing  services that involve the replacement of the entire windshield, (3)
    23  by or for the supplier or seller of a service for repair or  removal  of
    24  dents,  dings  or  creases  from  a  motor vehicle without affecting the

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD10936-01-1
        A. 7210                             2

     1  existing paint finish using paintless dent repair  techniques,  but  not
     2  including  services that involve the replacement of vehicle body panels,
     3  or sanding, bonding or painting; and (4) by or for the supplier or sell-
     4  er  of a service for repair or replacement of a motor vehicle key or key
     5  fob in the event that the key or key fob  becomes  inoperable,  lost  or
     6  stolen.  In  conjunction  with  a motor vehicle leased for personal use,
     7  such term shall also mean a contract to perform the repair,  replacement
     8  or  maintenance  of  property, or to provide indemnification for repair,
     9  replacement or maintenance, due to excess wear and  use  or  damage  for
    10  items  such  as  tires,  paint cracks or chips, interior stains, rips or
    11  scratches, exterior dents or scratches, windshield cracks or  chips,  or
    12  missing interior or exterior parts that result in a lease-end charge not
    13  otherwise  covered by a service agreement or warranty, provided any such
    14  payment shall not exceed the purchase price of the vehicle.
    15    § 2. This act shall take effect immediately.