S T A T E   O F   N E W   Y O R K
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                                  8206

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                               May 7, 2009
                               ___________

Introduced  by M. of A. MORELLE -- read once and referred to the Commit-
  tee on Insurance

AN ACT to amend the insurance law, in relation to service contracts

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Subsection  (k)  of section 7902 of the insurance law, as
amended by chapter 264 of the laws  of  2006,  is  amended  to  read  as
follows:
  (k)  "Service  contract" means a contract or agreement, for a separate
or additional consideration, for a  specific  duration  to  perform  the
repair,  replacement  or maintenance of property, or indemnification for
repair, replacement or maintenance, due to  a  defect  in  materials  or
workmanship  or  wear and tear, with or without additional provision for
indemnity payments for incidental damages, provided any  such  indemnity
payment per incident shall not exceed the purchase price of the property
serviced.    Service  contracts may include towing, rental and emergency
road service, and may also provide for the repair, replacement or  main-
tenance  of  property  for  damage resulting from power surges and acci-
dental  damage  from  handling.  Service  contracts  may  also   include
contracts  to  repair,  replace  or  maintain residential appliances and
systems. Such term shall also mean a contract or agreement made  (1)  by
or  for the manufacturer or seller of a motor vehicle tire for repair or
replacement of the tire or wheel as the result of damage arising from  a
road  hazard,  (2)  BY  OR  FOR  THE SUPPLIER OR SELLER OF A SERVICE FOR
REPAIR OF CHIPS OR CRACKS IN A MOTOR VEHICLE WINDSHIELD, BUT NOT INCLUD-
ING SERVICES THAT INVOLVE THE REPLACEMENT OF THE ENTIRE WINDSHIELD,  AND
(3)  BY OR FOR THE SUPPLIER OR SELLER OF A SERVICE FOR REPAIR OR REMOVAL
OF DENTS, DINGS OR CREASES FROM A MOTOR VEHICLE  WITHOUT  AFFECTING  THE
EXISTING  PAINT  FINISH  USING PAINTLESS DENT REPAIR TECHNIQUES, BUT NOT
INCLUDING SERVICES THAT INVOLVE THE REPLACEMENT OF VEHICLE BODY  PANELS,
OR SANDING, BONDING OR PAINTING.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD08900-01-9
              

A. 8206                             2

  S  2. Subsection (a) of section 7903 of the insurance law, as added by
chapter 614 of the laws of 1997, is amended to read as follows:
  (a)  [Nothwithstanding]  NOTWITHSTANDING  any  other provision of this
chapter to the contrary, the marketing, sale, offering for  sale,  issu-
ance,  making, proposing to make and administration of service contracts
by any provider, administrator or other person, shall be exempt from all
other provisions of this chapter. A provider may, but  is  not  required
to, appoint an administrator or other designee to be responsible for any
or  all  of  the administration of service contracts and compliance with
this article.  NOTWITHSTANDING ANY OTHER PROVISION OF  THIS  ARTICLE,  A
PROVIDER  OF  A SERVICE CONTRACT, AS DEFINED IN PARAGRAPHS TWO AND THREE
OF SUBSECTION (K) OF SECTION SEVEN THOUSAND NINE  HUNDRED  TWO  OF  THIS
ARTICLE,  SHALL,  AT LEAST THIRTY DAYS PRIOR TO THE EFFECTIVE DATE OF AN
INITIAL PROVIDER FEE, OR A CHANGE IN A PROVIDER FEE, FILE THE AMOUNT  OF
THE  PROVIDER  FEE WITH THE SUPERINTENDENT AND SUCH FILING SHALL BE OPEN
TO PUBLIC INSPECTION; AND PROVIDED FURTHER THAT THE PROVIDER  FEE  SHALL
NOT EXCEED THE AMOUNT FILED.
  S 3. This act shall take effect immediately.