Bill Text: FL S1120 | 2016 | Regular Session | Comm Sub

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Bill Title: Motor Vehicle Service Agreement Companies

Spectrum: Bipartisan Bill

Status: (Introduced - Dead) 2016-02-24 - Laid on Table, companion bill(s) passed, see CS/HB 875 (Ch. 2016-60) [S1120 Detail]

Download: Florida-2016-S1120-Comm_Sub.html

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       Florida Senate - 2016                             CS for SB 1120
       
       
        
       By the Committee on Banking and Insurance; and Senator Abruzzo
       
       597-02613-16                                          20161120c1
    1                        A bill to be entitled                      
    2         An act relating to motor vehicle service agreement
    3         companies; amending s. 634.011, F.S.; revising and
    4         providing definitions; providing an effective date.
    5          
    6  Be It Enacted by the Legislature of the State of Florida:
    7  
    8         Section 1. Subsections (14) through (17) of section
    9  634.011, Florida Statutes, are renumbered as subsections (15)
   10  through (18), respectively, subsections (2) and (8) of that
   11  section are amended, and a new subsection (14) is added to that
   12  section, to read:
   13         634.011 Definitions.—As used in this part, the term:
   14         (2) “Additive product” means any fuel supplement, oil
   15  supplement, or any other supplement product added to a motor
   16  vehicle for the purpose of increasing or enhancing the
   17  performance or improving the longevity of such motor vehicle.
   18  The term “additive product” does not include a product applied
   19  to the exterior or interior surface of a motor vehicle to
   20  protect the appearance of the motor vehicle.
   21         (8) “Motor vehicle service agreement” or “service
   22  agreement” means any contract or agreement indemnifying the
   23  service agreement holder for the motor vehicle listed on the
   24  service agreement and arising out of the ownership, operation,
   25  and use of the motor vehicle against loss caused by failure of
   26  any mechanical or other component part, or any mechanical or
   27  other component part that does not function as it was originally
   28  intended; however, nothing in this part shall prohibit or affect
   29  the giving, free of charge, of the usual performance guarantees
   30  by manufacturers or dealers in connection with the sale of motor
   31  vehicles. Transactions exempt under s. 624.125 are expressly
   32  excluded from this definition and are exempt from the provisions
   33  of this part. The term “motor vehicle service agreement”
   34  includes any contract or agreement that provides:
   35         (a) For the coverage or protection defined in this
   36  subsection and which is issued or provided in conjunction with
   37  an additive product applied to the motor vehicle that is the
   38  subject of such contract or agreement;
   39         (b) For payment of vehicle protection expenses.
   40         1.a. “Vehicle protection expenses” means a preestablished
   41  flat amount payable for the loss of or damage to a vehicle or
   42  expenses incurred by the service agreement holder for loss or
   43  damage to a covered vehicle, including, but not limited to,
   44  applicable deductibles under a motor vehicle insurance policy;
   45  temporary vehicle rental expenses; expenses for a replacement
   46  vehicle that is at least the same year, make, and model of the
   47  stolen motor vehicle; sales taxes or registration fees for a
   48  replacement vehicle that is at least the same year, make, and
   49  model of the stolen vehicle; or other incidental expenses
   50  specified in the agreement.
   51         b. “Vehicle protection product” means a product or system
   52  installed or applied to a motor vehicle or designed to prevent
   53  the theft of the motor vehicle or assist in the recovery of the
   54  stolen motor vehicle.
   55         2. Vehicle protection expenses shall be payable in the
   56  event of loss or damage to the vehicle as a result of the
   57  failure of the vehicle protection product to prevent the theft
   58  of the motor vehicle or to assist in the recovery of the stolen
   59  motor vehicle. Vehicle protection expenses covered under the
   60  agreement shall be clearly stated in the service agreement form,
   61  unless the agreement provides for the payment of a
   62  preestablished flat amount, in which case the service agreement
   63  form shall clearly identify such amount.
   64         3. Motor vehicle service agreements providing for the
   65  payment of vehicle protection expenses shall either:
   66         a. Reimburse a service agreement holder for the following
   67  expenses, at a minimum: deductibles applicable to comprehensive
   68  coverage under the service agreement holder’s motor vehicle
   69  insurance policy; temporary vehicle rental expenses; sales taxes
   70  and registration fees on a replacement vehicle that is at least
   71  the same year, make, and model of the stolen motor vehicle; and
   72  the difference between the benefits paid to the service
   73  agreement holder for the stolen vehicle under the service
   74  agreement holder’s comprehensive coverage and the actual cost of
   75  a replacement vehicle that is at least the same year, make, and
   76  model of the stolen motor vehicle; or
   77         b. Pay a preestablished flat amount to the service
   78  agreement holder.
   79  
   80  Payments shall not duplicate any benefits or expenses paid to
   81  the service agreement holder by the insurer providing
   82  comprehensive coverage under a motor vehicle insurance policy
   83  covering the stolen motor vehicle; however, the payment of
   84  vehicle protection expenses at a preestablished flat amount of
   85  $5,000 or less does not duplicate any benefits or expenses
   86  payable under any comprehensive motor vehicle insurance policy;
   87  or
   88         (c)1. For repair or replacement of tires or wheels on a
   89  motor vehicle damaged as a result of encountering a road hazard;
   90         (d) For removal of dents, dings, or creases on a motor
   91  vehicle that may be repaired using the process of paintless dent
   92  removal without affecting the existing paint finish and without
   93  using replacement body panels or sanding, bonding, or painting;
   94  or
   95         (e) For replacement of a motor vehicle key or key fob if
   96  the key or key fob is inoperable, lost, or stolen For the
   97  payment for paintless dent-removal services provided by a
   98  company whose primary business is providing such services.
   99         2. “Paintless dent-removal” means the process of removing
  100  dents, dings, and creases, including hail damage, from a vehicle
  101  without affecting the existing paint finish, but does not
  102  include services that involve the replacement of vehicle body
  103  panels or sanding, bonding, or painting.
  104         (14) “Road hazard” means a danger that is encountered while
  105  operating a motor vehicle. The term includes, but is not limited
  106  to, potholes, rocks, debris, metal parts, glass, plastic, curbs,
  107  and composite scraps. The term does not include any damage
  108  caused by collision with another vehicle, vandalism, or other
  109  causes usually covered under the comprehensive or collision
  110  coverages provided by an automobile physical damage policy.
  111         Section 2. This act shall take effect July 1, 2016.