Chapter 188 |
2019 -- H 5674 Enacted 07/15/2019 |
A N A C T |
RELATING TO COMMERCIAL LAW--GENERAL REGULATORY PROVISIONS -- SERVICE CONTRACTS |
Introduced By: Representatives Jacquard, Chippendale, and Kennedy |
Date Introduced: February 27, 2019 |
It is enacted by the General Assembly as follows: |
SECTION 1. Title 6 of the General Laws entitled "COMMERCIAL LAW - GENERAL |
REGULATORY PROVISIONS" is hereby amended by adding thereto the following chapter: |
CHAPTER 56 |
SERVICE CONTRACTS |
6-56-1. Definitions. |
For purposes of this section, the following terms shall have the following meanings: |
(1) "Consumer product" means any tangible personal property that is distributed in |
commerce and is normally used for personal, family, or household purposes, including a motor |
vehicle, and any tangible personal property intended to be attached to or installed in any real |
property without regard to whether it is so attached or installed. |
(2) "Incidental costs" means expenses specified in a vehicle theft protection program |
warranty that are incurred by the warranty holder due to the failure of a vehicle theft protection |
program to perform as provided in the contract. Incidental costs may be reimbursed in either a |
fixed amount specified in the vehicle theft protection program warranty or by use of a formula |
itemizing specific incidental costs incurred by the warranty holder. |
(3) "Maintenance agreement" means a contract of limited duration that provides for |
scheduled maintenance only. |
(4) "Road hazard" means a hazard that is encountered while driving a motor vehicle and |
which that may include, but not be limited to, potholes, rocks, wood debris, metal parts, glass, |
plastic, curbs, or composite scraps. |
(5) "Service contract" means a contract or agreement for a separately stated consideration |
for any duration to perform the repair, replacement, or maintenance of a consumer product or |
indemnification for the same, for the operational or structural failure of a consumer product due |
to a defect in materials, workmanship, accidental damage from handling, or normal wear and tear, |
with or without additional provisions for incidental payment of indemnity under limited |
circumstances, including, but not limited to, towing, rental, and emergency road service and road |
hazard protection. Service contracts may provide for the repair, replacement, or maintenance of a |
consumer product for damage resulting from power surges or interruption. "Service contract" also |
includes a contract or agreement sold for a separately stated consideration for a specific duration |
that provides for any of the following: |
(i) The repair or replacement or indemnification for the repair or replacement of a motor |
vehicle for the operational or structural failure of one or more parts or systems of the motor |
vehicle brought about by the failure of an additive product to perform as represented; |
(ii) The repair or replacement of tires or wheels on a motor vehicle damaged as a result of |
coming into contact with road hazards; |
(iii) The removal of dents, dings, or creases on a motor vehicle that can be repaired using |
the process of paintless dent removal without affecting the existing paint finish and without |
replacing vehicle body panels, sanding, bonding, or painting; |
(iv) The repair of chips or cracks in or the replacement of motor vehicle windshields as a |
result of damage caused by road hazards; |
(v) The replacement of a motor vehicle key or key fob in the event that the key or key fob |
becomes inoperable or is lost or stolen; or |
(vi) Other services or products which that may be approved by the director of the |
department of business regulation. |
(6) "Vehicle theft protection product" means a device or system that: |
(i) Is installed on or applied to a motor vehicle; |
(ii) Is designed to prevent loss or damage to a motor vehicle from theft; and |
(iii) Includes a vehicle theft protection program warranty. “Vehicle theft protection |
product” does not include fuel additives, oil additives, or other chemical products applied to the |
engine, transmission, or fuel system, or interior or exterior surfaces of a motor vehicle. |
(7) "Vehicle theft protection product warranty" means a written agreement by a warrantor |
that provides if the vehicle theft protection product fails to prevent loss or damage to a motor |
vehicle from theft, that the warrantor will pay to or on behalf of the warranty holder specified |
incidental costs as a result of the failure of the vehicle theft protection product to perform |
pursuant to the terms of the vehicle theft protection product warranty. |
6-56-2. Service contracts. |
The offering, sale, or issuance of a service contract, vehicle theft protection product |
warranty, or maintenance agreement shall not be considered insurance or subject to the insurance |
laws of this state unless made expressly applicable thereto. |
SECTION 2. This act shall take effect on January 1, 2020. |
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LC001686 |
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