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S05847 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          5847
 
                               2017-2018 Regular Sessions
 
                    IN SENATE
 
                                       May 3, 2017
                                       ___________
 
        Introduced  by  Sen.  SEWARD -- 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 expanding  the  avail-
          ability of meaningful service contracts to protect New Yorkers leasing
          automobiles  for  their  personal  use  from unanticipated "lease-end"
          charges related to excess use or wear and tear of the leased vehicle
 
          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  amended by chapter 409 of the laws  of  2012,  is  amended  to  read  as
     3  follows:
     4    (k)  "Service  contract" means a contract or agreement, for a separate
     5  or additional consideration, for a  specific  duration  to  perform  the
     6  repair,  replacement  or maintenance of property, or indemnification for
     7  repair, replacement or maintenance, due to  a  defect  in  materials  or
     8  workmanship  or  wear and tear, with or without additional provision for
     9  indemnity payments for incidental damages, provided any  such  indemnity
    10  payment per incident shall not exceed the purchase price of the property
    11  serviced.    Service  contracts may include towing, rental and emergency
    12  road service, and may also provide for the repair, replacement or  main-
    13  tenance  of  property  for  damage resulting from power surges and acci-
    14  dental  damage  from  handling.  Service  contracts  may  also   include
    15  contracts  to  repair,  replace  or  maintain residential appliances and
    16  systems. Such term shall also mean a contract or agreement made  (1)  by
    17  or  for the manufacturer or seller of a motor vehicle tire for repair or
    18  replacement of the tire or wheel as the result of damage arising from  a
    19  road  hazard,  (2)  by  or  for  the supplier or seller of a service for
    20  repair of chips or cracks in a motor vehicle windshield, but not includ-
    21  ing services that involve the replacement of the entire windshield,  and
    22  (3)  by or for the supplier or seller of a service for repair or removal
    23  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.
                                                                   LBD11329-02-7

        S. 5847                             2
 
     1  existing  paint  finish  using paintless dent repair techniques, but not
     2  including services that involve the replacement of vehicle body  panels,
     3  or  sanding,  bonding  or  painting. In conjunction with a motor vehicle
     4  leased for personal use, such term shall also mean a contract to perform
     5  the repair, replacement or maintenance of property, or to provide indem-
     6  nification  for  repair,  replacement or maintenance, due to excess wear
     7  and use or damage for items such as tires, paint cracks or chips,  inte-
     8  rior  stains, rips or scratches, exterior dents or scratches, windshield
     9  cracks or chips, missing interior or exterior parts  that  result  in  a
    10  lease-end charge not otherwise covered by a service agreement or warran-
    11  ty, provided any such payment shall not exceed the purchase price of the
    12  vehicle.
    13    § 2. This act shall take effect immediately.
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