Bill Text: NY A10591 | 2021-2022 | General Assembly | Introduced

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Bill Title: Relates to service contracts for accidental damages from handling and power surges.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2022-07-06 - referred to insurance [A10591 Detail]

Download: New_York-2021-A10591-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          10591

                   IN ASSEMBLY

                                      July 6, 2022
                                       ___________

        Introduced by COMMITTEE ON RULES -- (at request of M. of A. Lunsford) --
          read once and referred to the Committee on Insurance

        AN  ACT to amend the insurance law, in relation to service contracts for
          accidental damages from handling

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section  1.  Subsection  (k)  of section 7902 of the insurance law, as
     2  separately amended by chapter 247 of the laws of 2019 and section  1  of
     3  subpart  Q  of  part XX of chapter 55 of the laws of 2020, is amended to
     4  read as follows:
     5    (k) "Service contract" means a contract or agreement, for  a  separate
     6  or  additional  consideration,  for  a  specific duration to perform the
     7  repair, replacement or maintenance of property, or  indemnification  for
     8  repair,  replacement  or  maintenance,  due  to a defect in materials or
     9  workmanship or wear and tear, power surges or  accidental  damages  from
    10  handling,  with  or  without additional provision for indemnity payments
    11  for incidental damages, provided any such indemnity payment per incident
    12  shall not exceed the purchase price of the property serviced.    Service
    13  contracts  may  include  towing, rental and emergency road service[, and
    14  may also provide for the repair, replacement or maintenance of  property
    15  for damage resulting from power surges and accidental damage from handl-
    16  ing]. Service contracts may also include contracts to repair, replace or
    17  maintain residential appliances and systems. Such term shall also mean a
    18  contract or agreement made (1) by or for the manufacturer or seller of a
    19  motor vehicle tire for repair or replacement of the tire or wheel as the
    20  result  of damage arising from a road hazard, (2) by or for the supplier
    21  or seller of a service for repair of chips or cracks in a motor  vehicle
    22  windshield,  but  not including services that involve the replacement of
    23  the entire windshield, (3) by or for the supplier or seller of a service
    24  for repair or removal of dents, dings or creases from  a  motor  vehicle
    25  without  affecting the existing paint finish using paintless dent repair
    26  techniques, but not including services that involve the  replacement  of
    27  vehicle  body panels, or sanding, bonding or painting; and (4) by or for
    28  the supplier or seller of a service for repair or replacement of a motor

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD15496-01-2
        A. 10591                            2

     1  vehicle key or key fob in the event that the  key  or  key  fob  becomes
     2  inoperable,  lost  or stolen. In conjunction with a motor vehicle leased
     3  for personal use, such term shall also mean a contract  to  perform  the
     4  repair, replacement or maintenance of property, or to provide indemnifi-
     5  cation  for  repair,  replacement or maintenance, due to excess wear and
     6  use or damage for interior stains, rips or scratches or missing interior
     7  parts that result in a lease-end  charge  not  otherwise  covered  by  a
     8  service  agreement  or  warranty,  provided  any  such payment shall not
     9  exceed the purchase price of the vehicle.
    10    § 2. This act shall take effect immediately.