Bill Text: NY S02678 | 2023-2024 | 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) 2024-01-03 - REFERRED TO INSURANCE [S02678 Detail]

Download: New_York-2023-S02678-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          2678

                               2023-2024 Regular Sessions

                    IN SENATE

                                    January 24, 2023
                                       ___________

        Introduced  by  Sen. BRESLIN -- read twice and ordered printed, and when
          printed to be committed 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

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD01944-01-3
        S. 2678                             2

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