senate Bill S4040A

Signed by Governor

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

download pdf

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.

do you support this bill?

Bill Details

See Assembly Version of this Bill:
A3782A
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

Sponsor Memo

BILL NUMBER:S4040A

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--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:

  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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD05426-02-1

S. 4040--A                          2

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.
  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.  THE REQUIREMENT TO FILE THE AMOUNT OF  THE
PROVIDER  FEE WITH THE SUPERINTENDENT IN THIS SUBSECTION SHALL NOT APPLY
TO FEES SET FORTH IN ANY AGREEMENT TO WHICH AN AUTHORIZED INSURER  IS  A
PARTY.
  S 3. This act shall take effect immediately.

Comments

Open Legislation comments facilitate discussion of New York State legislation. All comments are subject to moderation. Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity or hate speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Comment moderation is generally performed Monday through Friday.

By contributing or voting you agree to the Terms of Participation and verify you are over 13.