S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1193
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 13, 2023
                                ___________
 
 Introduced by M. of A. LUNSFORD -- read once and referred to the Commit-
   tee 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:

   Section  1.  Subsection  (k)  of section 7902 of the insurance law, as
 separately amended by chapter 247 of the laws of 2019 and section  1  of
 subpart  Q  of  part XX of chapter 55 of the laws of 2020, 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, POWER SURGES OR  ACCIDENTAL  DAMAGES  FROM
 HANDLING,  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 maintenance of  property
 for damage resulting from power surges and accidental damage from handl-
 ing]. 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 including services that involve the replacement of
 the entire windshield, (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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD01944-01-3
              

 A. 1193                             2
 
 techniques, but not including services that involve the  replacement  of
 vehicle  body panels, or sanding, bonding or painting; and (4) by or for
 the supplier or seller of a service for repair or replacement of a motor
 vehicle  key  or  key  fob  in the event that the key or key fob becomes
 inoperable, lost or stolen. In conjunction with a motor  vehicle  leased
 for  personal  use,  such term shall also mean a contract to perform the
 repair, replacement or maintenance of property, or to provide indemnifi-
 cation for repair, replacement or maintenance, due to  excess  wear  and
 use or damage for interior stains, rips or scratches or missing interior
 parts  that  result  in  a  lease-end  charge not otherwise covered by a
 service agreement or warranty,  provided  any  such  payment  shall  not
 exceed the purchase price of the vehicle.
   § 2. This act shall take effect immediately.