S T A T E O F N E W Y O R K
________________________________________________________________________
8206
2009-2010 Regular Sessions
I N A S S E M B L Y
May 7, 2009
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Introduced by M. of A. MORELLE -- read once and referred to the Commit-
tee 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.
LBD08900-01-9
A. 8206 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.