senate Bill S4040

Signed by Governor Amended

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

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Sponsor

Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed by Governor
view actions

actions

  • 15 / Mar / 2011
    • REFERRED TO INSURANCE
  • 21 / Mar / 2011
    • 1ST REPORT CAL.241
  • 22 / Mar / 2011
    • 2ND REPORT CAL.
  • 23 / Mar / 2011
    • ADVANCED TO THIRD READING
  • 16 / May / 2011
    • AMENDED ON THIRD READING 4040A
  • 07 / Jun / 2011
    • PASSED SENATE
  • 07 / Jun / 2011
    • DELIVERED TO ASSEMBLY
  • 07 / Jun / 2011
    • REFERRED TO INSURANCE
  • 04 / Jan / 2012
    • DIED IN ASSEMBLY
  • 04 / Jan / 2012
    • RETURNED TO SENATE
  • 04 / Jan / 2012
    • REFERRED TO INSURANCE
  • 05 / Mar / 2012
    • 1ST REPORT CAL.280
  • 06 / Mar / 2012
    • 2ND REPORT CAL.
  • 07 / Mar / 2012
    • ADVANCED TO THIRD READING
  • 22 / Mar / 2012
    • PASSED SENATE
  • 22 / Mar / 2012
    • DELIVERED TO ASSEMBLY
  • 22 / Mar / 2012
    • REFERRED TO INSURANCE
  • 30 / May / 2012
    • SUBSTITUTED FOR A3782A
  • 30 / May / 2012
    • ORDERED TO THIRD READING CAL.626
  • 31 / May / 2012
    • PASSED ASSEMBLY
  • 31 / May / 2012
    • RETURNED TO SENATE
  • 06 / Aug / 2012
    • DELIVERED TO GOVERNOR
  • 17 / Aug / 2012
    • SIGNED CHAP.409

Summary

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.

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Bill Details

See Assembly Version of this Bill:
A3782
Versions:
S4040
S4040A
Legislative Cycle:
2011-2012
Law Section:
Insurance Law
Laws Affected:
Amd ยงยง7902 & 7903, Ins L
Versions Introduced in 2009-2010 Legislative Cycle:
S2092, A8206

Votes

16
1
16
Aye
1
Nay
1
aye with reservations
0
absent
0
excused
0
abstained
show Insurance committee vote details

Sponsor Memo

BILL NUMBER:S4040

TITLE OF BILL:
An act
to amend the insurance law, in relation to service contracts

PURPOSE:
To allow a seller or supplier of windshield repair or
paintless dent removal services to offer service contracts for the
(i) repair chips or cracks in a motor vehicle windshield, but not
including services that involve the replacement of the entire
windshield, and (ii) repair or removal of dents, dings or creases
from a motor vehicle without affecting the existing paint finish
using paintless dent repair techniques, but not including services
that involve the replacement of vehicle body panels, or sanding,
bonding or painting.

SUMMARY OF PROVISIONS:
Section 1. Amends the definition of "service
contract" to include windshield repair and paintless dent removal
services.

Section 2. Requires providers of service contracts, shall at least
thirty days prior to the effective date of an initial provider fee,
or change in a provider fee, file the amount of the provider fee with
the superintendent and such filing shall be open to public
inspection; and provided further that the provider fee shall not
exceed the amount filed.

Section 3. Effective Date.

JUSTIFICATION:
Service contracts are popular products with consumers
because it gives them peace of mind, knowing that they have managed
the cost of future repairs of their vehicles, Allowing the provision
of windshield repair and paintless dent removal service contracts be
sellers and suppliers of such services will give consumers the option
of purchasing such coverage in lieu of bearing the risk of repair
Through the purchase of these contracts, consumers will not have to
bear the cost of repairing cracks or chips in their vehicle
windshields, or removing small dents, dings or creases from their
motor vehicles.

This bill also provides the superintendent of insurance with the
necessary oversight to make sure that the cost of these service
contracts are of a reasonable nature.

LEGISLATIVE HISTORY:
S.2092/A.8206 of 2009-10

FISCAL IMPLICATIONS:
None.

EFFECTIVE DATE:
Immediately.


view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  4040

                       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

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:

  Section  1.  Subsection  (k)  of section 7902 of the insurance law, as
amended by chapter 264 of the laws  of  2006,  is  amended  to  read  as
follows:
  (k)  "Service  contract" means a contract or agreement, for a separate
or additional consideration, for a  specific  duration  to  perform  the
repair,  replacement  or maintenance of property, or indemnification for
repair, replacement or maintenance, due to  a  defect  in  materials  or
workmanship  or  wear and tear, with or without additional provision for
indemnity payments for incidental damages, provided any  such  indemnity
payment per incident shall not exceed the purchase price of the property
serviced.    Service  contracts may include towing, rental and emergency
road service, and may also provide for the repair, replacement or  main-
tenance  of  property  for  damage resulting from power surges and acci-
dental  damage  from  handling.  Service  contracts  may  also   include
contracts  to  repair,  replace  or  maintain residential appliances and
systems. Such term shall also mean a contract or agreement made  (1)  by
or  for the manufacturer or seller of a motor vehicle tire for repair or
replacement of the tire or wheel as the result of damage arising from  a
road  hazard,  (2)  BY  OR  FOR  THE SUPPLIER OR SELLER OF A SERVICE FOR
REPAIR OF CHIPS OR CRACKS IN A MOTOR VEHICLE WINDSHIELD, BUT NOT INCLUD-
ING SERVICES THAT INVOLVE THE REPLACEMENT OF THE ENTIRE WINDSHIELD,  AND
(3)  BY OR FOR THE SUPPLIER OR SELLER OF A SERVICE FOR REPAIR OR REMOVAL
OF DENTS, DINGS OR CREASES FROM A MOTOR VEHICLE  WITHOUT  AFFECTING  THE
EXISTING  PAINT  FINISH  USING PAINTLESS DENT REPAIR TECHNIQUES, BUT NOT
INCLUDING SERVICES THAT INVOLVE THE REPLACEMENT OF VEHICLE BODY  PANELS,
OR SANDING, BONDING OR PAINTING.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD05426-01-1

S. 4040                             2

  S  2. Subsection (a) of section 7903 of the insurance law, as added by
chapter 614 of the laws of 1997, is amended to read as follows:
  (a)  [Nothwithstanding]  NOTWITHSTANDING  any  other provision of this
chapter to the contrary, the marketing, sale, offering for  sale,  issu-
ance,  making, proposing to make and administration of service contracts
by any provider, administrator or other person, shall be exempt from all
other provisions of this chapter. A provider may, but  is  not  required
to, appoint an administrator or other designee to be responsible for any
or  all  of  the administration of service contracts and compliance with
this article.  NOTWITHSTANDING ANY OTHER PROVISION OF  THIS  ARTICLE,  A
PROVIDER  OF  A SERVICE CONTRACT, AS DEFINED IN PARAGRAPHS TWO AND THREE
OF SUBSECTION (K) OF SECTION SEVEN THOUSAND NINE  HUNDRED  TWO  OF  THIS
ARTICLE,  SHALL,  AT LEAST THIRTY DAYS PRIOR TO THE EFFECTIVE DATE OF AN
INITIAL PROVIDER FEE, OR A CHANGE IN A PROVIDER FEE, FILE THE AMOUNT  OF
THE  PROVIDER  FEE WITH THE SUPERINTENDENT AND SUCH FILING SHALL BE OPEN
TO PUBLIC INSPECTION; AND PROVIDED FURTHER THAT THE PROVIDER  FEE  SHALL
NOT EXCEED THE AMOUNT FILED.
  S 3. This act shall take effect immediately.

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