Bill Text: MS HB548 | 2011 | Regular Session | Introduced
Bill Title: Vehicle service contracts; provide that companies with net worth at least $100 million may issue regardless of reimbursement insurance.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Failed) 2011-02-01 - Died In Committee [HB548 Detail]
Download: Mississippi-2011-HB548-Introduced.html
MISSISSIPPI LEGISLATURE
2011 Regular Session
To: Insurance
By: Representative Robinson
House Bill 548
AN ACT TO AMEND SECTION 83-65-105, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT VEHICLE SERVICE CONTRACT PROVIDERS MAY ISSUE, SELL OR OFFER FOR SALE VEHICLE SERVICE CONTRACTS IN THIS STATE REGARDLESS OF WHETHER THE PROVIDER IS INSURED UNDER A REIMBURSEMENT INSURANCE POLICY IF THE PROVIDER OR PROVIDER'S PARENT COMPANY HAS A NET WORTH OR STOCKHOLDER'S EQUITY IN AN AMOUNT EQUAL TO OR GREATER THAN ONE HUNDRED MILLION DOLLARS AND THE PROVIDER MEETS CERTAIN FILING REQUIREMENTS; TO PROVIDE THAT A PROVIDER WHO MEETS THOSE FINANCIAL CRITERIA AND FILING REQUIREMENTS SHALL BE EXEMPT FROM CERTAIN OTHER FILING AND DISCLOSURE REQUIREMENTS; TO AMEND SECTIONS 83-65-107, 83-65-109 AND 83-65-111, MISSISSIPPI CODE OF 1972, TO CONFORM TO THE PROVISIONS OF THE ACT; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 83-65-105, Mississippi Code of 1972, is amended as follows:
83-65-105. (1) Except as provided under subsections (2) and (3) of this section, a vehicle service contract shall not be issued, sold, or offered for sale in this state unless the provider of the vehicle service contract is a named insured under a reimbursement insurance policy issued by an insurer authorized to do business in this state.
(2) Notwithstanding the provisions of subsection (1) of this section, a vehicle service contract may be issued, sold or offered for sale in this state if the provider complies with all of the following requirements:
(a) Maintains, or has a parent company that maintains, a net worth or stockholders' equity in an amount equal to or greater than One Hundred Million Dollars ($100,000,000.00);
(b) If requested by the commissioner, files with the commissioner a true and correct copy of the vehicle service contract;
(c) If requested by the commissioner, files with the commissioner a copy of the provider's or the provider's parent company's Form 10-K or Form 20-F, if such filing is made by the provider or provider's parent company, that was most recently filed with the Securities and Exchange Commission within the preceding calendar year; or, if the provider or provider's parent company does not file a Form 10-K or Form 20-F with the Securities and Exchange Commission, if requested by the commissioner, files with the commissioner a copy of the provider's or the provider's parent company's most recent audited financial statements indicating a net worth of the provider or its parent company of an amount equal to or greater than One Hundred Million Dollars ($100,000,000.00); and
(d) If the provider's parent company's Form 10-K, Form 20-F or audited financial statements are filed with the commissioner in accordance with paragraph (c) of this subsection, the parent company must agree to guarantee the obligations of the provider relating to vehicle service contracts sold by that provider in this state.
(3) If a provider complies with the requirements of subsection (2) of this section, the provider may issue, sell or offer for sale in this state vehicle service contracts, and those contracts shall not be subject to the requirements of subsection (1) of this section, Section 83-65-107, Section 83-65-109 and Section 83-65-111(2)(a) and (b).
SECTION 2. Section 83-65-107, Mississippi Code of 1972, is amended as follows:
83-65-107. Except as provided under Section 83-65-105(3), a vehicle service contract shall not be issued, sold, or offered for sale in this state unless a true and correct copy of the vehicle service contract and the provider's reimbursement insurance policy and the rates to be charged for the reimbursement insurance policy have been filed by the insurer issuing the reimbursement insurance policy with the commissioner. Rates shall not be excessive, inadequate or unfairly discriminatory.
SECTION 3. Section 83-65-109, Mississippi Code of 1972, is amended as follows:
83-65-109. Except as provided under Section 83-65-105(3), a reimbursement insurance policy shall not be issued, sold, or offered for sale in this state unless the reimbursement insurance policy conspicuously states that the issuer of the policy shall provide on behalf of the provider all services which the provider is legally obligated to provide according to the provider's contractual obligations under the vehicle service contracts issued or sold by the provider.
SECTION 4. Section 83-65-111, Mississippi Code of 1972, is amended as follows:
83-65-111. (1) A vehicle service contract shall not be issued, sold, or offered for sale in this state unless the contract conspicuously states that the obligations of the provider to the service contract holder to provide services are guaranteed under a reimbursement insurance policy, and unless the contract conspicuously states the name and address of the issuer of the reimbursement policy.
(2) Except as provided under Section 83-65-105(3), every vehicle service contract shall be written in clear, understandable language and shall be printed or typed in easy-to-read type, size and style, and shall not be issued, sold, or offered for sale in this state unless the contract:
(a) Conspicuously states that the services for which the provider is legally obligated to perform to the service contract holder are guaranteed under a reimbursement insurance policy;
(b) Conspicuously states the name and address of the issuer of the reimbursement insurance policy;
(c) Identifies the provider, the seller, and the service contract holder;
(d) Sets forth the total purchase price and the terms under which it is to be paid;
(e) Sets forth the procedure for making a claim, including a toll-free telephone number for claim service and a procedure for obtaining reimbursement for emergency repairs performed outside of normal business hours;
(f) Conspicuously states the existence of a deductible amount, if any;
(g) Specifies the merchandise or services, or both, to be provided and any limitations, exceptions or exclusions;
(h) Sets forth the conditions on which the use of nonoriginal manufacturers parts, or substitute service, will be allowed;
(i) Conspicuously sets forth all of the obligations and duties of the service contract holder, such as the duty to protect against any further damage to the vehicle and the requirement for certain service and maintenance;
(j) Sets forth any terms, restrictions, or conditions governing transferability of the vehicle service contract.
SECTION 5. This act shall take effect and be in force from and after July 1, 2011.
