Assembly Bill A5651

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5651
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              March 20, 2023
                                ___________
 
 Introduced  by  M.  of  A.  ZEBROWSKI  --  read once and referred to the
   Committee on Insurance
 
 AN ACT to amend the insurance law, in  relation  to  clarifying  certain
   provisions  related to excess use or wear and tear of a vehicle leased
   for personal use for purposes of 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
 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, 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, (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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD08805-01-3
              

 A. 5651                             2
 
 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; and (4) by or for the supplier or sell-
 er  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 indemnification for repair,
 replacement or maintenance, due to excess wear and  use  or  damage  for
 ITEMS  SUCH  AS  TIRES,  PAINT CRACKS OR CHIPS, interior stains, rips or
 scratches, EXTERIOR DENTS OR SCRATCHES, WINDSHIELD CRACKS OR  CHIPS,  or
 missing interior OR EXTERIOR 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.