Bill Text: MI HB4467 | 2013-2014 | 97th Legislature | Introduced
Bill Title: Insurance; other; regulation of service contracts under insurance code; exempt. Amends 1956 PA 218 (MCL 500.100 - 500.8302) by adding sec. 125.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2014-04-17 - Assigned Pa 110'14 With Immediate Effect [HB4467 Detail]
Download: Michigan-2013-HB4467-Introduced.html
HOUSE BILL No. 4467
March 19, 2013, Introduced by Rep. Foster and referred to the Committee on Insurance.
A bill to amend 1956 PA 218, entitled
"The insurance code of 1956,"
(MCL 500.100 to 500.8302) by adding section 125.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 125. (1) A service contract is not insurance or the
business of insurance and is not subject to this act.
(2) A person is not required to obtain a certificate of
authority or license under this act to administer or market, sell,
offer for sale, issue, make, or propose to make service contracts
to consumers.
(3) As used in this section, "service contract" means a
contract or agreement for a separately stated consideration for a
specific duration to perform the repair, replacement, or
maintenance of property or indemnification for repair, replacement,
or maintenance, for the operational or structural failure of any
motor vehicle, residential property, or other property due to a
defect in materials, workmanship, accidental damage from handling,
or normal wear and tear, with or without additional provisions for
incidental payment of indemnity under limited circumstances,
including, but not limited to, towing, rental and emergency road
service, and road hazard protection. Service contracts may provide
for the repair, replacement, or maintenance of property for damage
resulting from power surges or interruption. Service contract
includes other services and products, as determined by the
commissioner. Service contract also includes a contract or
agreement sold for a separately stated consideration for a specific
duration that provides for any of the following:
(a) The repair or replacement or indemnification for the
repair or replacement of a motor vehicle for the operational or
structural failure of 1 or more parts or systems of the motor
vehicle brought about by the failure of an additive product to
perform as represented.
(b) The repair or replacement of tires or wheels on a motor
vehicle damaged as a result of coming into contact with road
hazards, including, but not limited to, potholes, rocks, wood
debris, metal parts, glass, plastic, curbs, or composite scraps.
(c) The removal of dents, dings, or creases on a motor vehicle
that can be repaired using the process of paintless dent removal
without affecting the existing paint finish and without replacing
vehicle body panels, sanding, bonding, or painting.
(d) The repair of small motor vehicle windshield chips or
cracks, or if a windshield cannot be repaired, the replacement of
the windshield.
(e) The repair of damage to the interior components of a motor
vehicle caused by wear and tear, if the contract or agreement
expressly excludes the replacement of any part or component of a
motor vehicle's interior.
(f) The replacement of an inoperable, lost, or stolen motor
vehicle key or key fob.
