senate Bill S4040A

Signed By Governor
2011-2012 Legislative Session

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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Archive: Last Bill Status - Signed by Governor


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

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Actions

view actions (23)
Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Aug 17, 2012 signed chap.409
Aug 06, 2012 delivered to governor
May 31, 2012 returned to senate
passed assembly
May 30, 2012 ordered to third reading cal.626
substituted for a3782a
Mar 22, 2012 referred to insurance
delivered to assembly
passed senate
Mar 07, 2012 advanced to third reading
Mar 06, 2012 2nd report cal.
Mar 05, 2012 1st report cal.280
Jan 04, 2012 referred to insurance
returned to senate
died in assembly
Jun 07, 2011 referred to insurance
delivered to assembly
passed senate
May 16, 2011 amended on third reading 4040a
Mar 23, 2011 advanced to third reading
Mar 22, 2011 2nd report cal.
Mar 21, 2011 1st report cal.241
Mar 15, 2011 referred to insurance

Votes

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Mar 5, 2012 - Insurance committee Vote

S4040A
18
0
committee
18
Aye
0
Nay
0
Aye with Reservations
0
Absent
0
Excused
0
Abstained
show Insurance committee vote details

Mar 21, 2011 - Insurance committee Vote

S4040
16
1
committee
16
Aye
1
Nay
1
Aye with Reservations
0
Absent
0
Excused
0
Abstained
show committee vote details

Bill Amendments

Original
A (Active)
Original
A (Active)

S4040 - Bill Details

See Assembly Version of this Bill:
A3782A
Law Section:
Insurance Law
Laws Affected:
Amd §§7902 & 7903, Ins L
Versions Introduced in 2009-2010 Legislative Session:
S2092, A8206

S4040 - Bill Texts

view 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.

view 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 full text
download pdf
                    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.

S4040A (ACTIVE) - Bill Details

See Assembly Version of this Bill:
A3782A
Law Section:
Insurance Law
Laws Affected:
Amd §§7902 & 7903, Ins L
Versions Introduced in 2009-2010 Legislative Session:
S2092, A8206

S4040A (ACTIVE) - Bill Texts

view 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.

view 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 full text
download pdf
                    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.

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