Bill Text: NY A09081 | 2019-2020 | General Assembly | Introduced

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Bill Title: Relates to "lease-end" charges.

Spectrum: Partisan Bill (Democrat 3-0)

Status: (Introduced - Dead) 2020-03-12 - advanced to third reading cal.477 [A09081 Detail]

Download: New_York-2019-A09081-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          9081

                   IN ASSEMBLY

                                    January 16, 2020
                                       ___________

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

        AN ACT to amend the insurance law, in relation to "lease-end" charges

          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  a  chapter  of the laws of 2019, amending the insurance law
     3  relating to expanding the availability of meaningful  service  contracts
     4  to  protect  New Yorkers leasing automobiles for their personal use from
     5  unanticipated "lease-end" charges related to excess use or wear and tear
     6  of the leased vehicle, as proposed in legislative bills numbers S.  3631
     7  and A. 268, is amended to read as follows:
     8    (k) "Service contract" means a contract or agreement, for  a  separate
     9  or  additional  consideration,  for  a  specific duration to perform the
    10  repair, replacement or maintenance of property, or  indemnification  for
    11  repair,  replacement  or  maintenance,  due  to a defect in materials or
    12  workmanship or wear and tear, with or without additional  provision  for
    13  indemnity  payments  for incidental damages, provided any such indemnity
    14  payment per incident shall not exceed the purchase price of the property
    15  serviced.  Service contracts may include towing,  rental  and  emergency
    16  road  service, and may also provide for the repair, replacement or main-
    17  tenance of property for damage resulting from  power  surges  and  acci-
    18  dental   damage  from  handling.  Service  contracts  may  also  include
    19  contracts to repair, replace  or  maintain  residential  appliances  and
    20  systems.  Such  term shall also mean a contract or agreement made (1) by
    21  or for the manufacturer or seller of a motor vehicle tire for repair  or
    22  replacement  of the tire or wheel as the result of damage arising from a
    23  road hazard, (2) by or for the supplier  or  seller  of  a  service  for
    24  repair of chips or cracks in a motor vehicle windshield, but not includ-
    25  ing  services that involve the replacement of the entire windshield, and
    26  (3) by or for the supplier or seller of a service for repair or  removal
    27  of  dents,  dings  or creases from a motor vehicle without affecting the
    28  existing paint finish using paintless dent repair  techniques,  but  not
    29  including  services that involve the replacement of vehicle body panels,

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD03105-02-9
        A. 9081                             2

     1  or sanding, bonding or painting. In conjunction  with  a  motor  vehicle
     2  leased for personal use, such term shall also mean a contract to perform
     3  the repair, replacement or maintenance of property, or to provide indem-
     4  nification  for  repair,  replacement or maintenance, due to excess wear
     5  and use or damage for [items such as  tires,  paint  cracks  or  chips,]
     6  interior  stains,  rips  or  scratches[,  exterior  dents  or scratches,
     7  windshield cracks or chips,] or missing  interior  [or  exterior]  parts
     8  that  result  in  a  lease-end charge not otherwise covered by a service
     9  agreement or warranty, provided any such payment shall  not  exceed  the
    10  purchase price of the vehicle.
    11    §  2.  This  act  shall  take  effect on the same date and in the same
    12  manner as a chapter of the laws of  2019,  amending  the  insurance  law
    13  relating  to  expanding the availability of meaningful service contracts
    14  to protect New Yorkers leasing automobiles for their personal  use  from
    15  unanticipated "lease-end" charges related to excess use or wear and tear
    16  of  the leased vehicle, as proposed in legislative bills numbers S. 3631
    17  and A. 268, takes effect.