Bill Text: NY S04040 | 2011-2012 | General Assembly | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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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 (Republican 1-0)

Status: (Passed) 2012-08-17 - SIGNED CHAP.409 [S04040 Detail]

Download: New_York-2011-S04040-Amended.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                        4040--A
           Cal. No. 241
                              2011-2012 Regular Sessions
                                   I N  S E N A T E
                                    March 15, 2011
                                      ___________
       Introduced  by  Sen.  SEWARD -- read twice and ordered printed, and when
         printed to be committed to the  Committee  on  Insurance  --  reported
         favorably  from  said  committee,  ordered to first and second report,
         ordered to a third reading, amended and ordered  reprinted,  retaining
         its place in the order of third reading
       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
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD05426-02-1
       S. 4040--A                          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.
    4    S  2. Subsection (a) of section 7903 of the insurance law, as added by
    5  chapter 614 of the laws of 1997, is amended to read as follows:
    6    (a) [Nothwithstanding] NOTWITHSTANDING any  other  provision  of  this
    7  chapter  to  the contrary, the marketing, sale, offering for sale, issu-
    8  ance, making, proposing to make and administration of service  contracts
    9  by any provider, administrator or other person, shall be exempt from all
   10  other  provisions  of  this chapter. A provider may, but is not required
   11  to, appoint an administrator or other designee to be responsible for any
   12  or all of the administration of service contracts  and  compliance  with
   13  this  article.    NOTWITHSTANDING ANY OTHER PROVISION OF THIS ARTICLE, A
   14  PROVIDER OF A SERVICE CONTRACT, AS DEFINED IN PARAGRAPHS TWO  AND  THREE
   15  OF  SUBSECTION  (K)  OF  SECTION SEVEN THOUSAND NINE HUNDRED TWO OF THIS
   16  ARTICLE, SHALL, AT LEAST THIRTY DAYS PRIOR TO THE EFFECTIVE DATE  OF  AN
   17  INITIAL  PROVIDER FEE, OR A CHANGE IN A PROVIDER FEE, FILE THE AMOUNT OF
   18  THE PROVIDER FEE WITH THE SUPERINTENDENT AND SUCH FILING SHALL  BE  OPEN
   19  TO  PUBLIC  INSPECTION; AND PROVIDED FURTHER THAT THE PROVIDER FEE SHALL
   20  NOT EXCEED THE AMOUNT FILED.  THE REQUIREMENT TO FILE THE AMOUNT OF  THE
   21  PROVIDER  FEE WITH THE SUPERINTENDENT IN THIS SUBSECTION SHALL NOT APPLY
   22  TO FEES SET FORTH IN ANY AGREEMENT TO WHICH AN AUTHORIZED INSURER  IS  A
   23  PARTY.
   24    S 3. This act shall take effect immediately.