Bill Text: MI HB4467 | 2013-2014 | 97th Legislature | Engrossed
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-Engrossed.html
HB-4467, As Passed Senate, March 26, 2014
SUBSTITUTE FOR
HOUSE BILL NO. 4467
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) As used in this section:
(a) "Consumer product" means any tangible personal property
that is distributed in commerce and is normally used for personal,
family, or household purposes, including any tangible personal
property intended to be attached to or installed in any real
property without regard to whether it is so attached or installed.
(b) "Service contract" means a written contract that is sold
for stated consideration for a specific duration that provides any
of the following:
(i) To perform or provide reimbursement for the repair,
replacement, or maintenance of a consumer product because of the
operational or structural failure of the consumer product due to a
defect in materials or workmanship; accidental damage from
handling, power surge, or interruption; 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.
(ii) 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.
(iii) 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.
(iv) 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.
(v) The repair of small motor vehicle windshield chips or
cracks, or if a windshield cannot be repaired, the replacement of
the windshield.
(vi) The replacement of an inoperable, lost, or stolen motor
vehicle key or key fob.
