| Chapter 243 |
| 2019 -- S 0458 AS AMENDED Enacted 07/15/2019 |
| A N A C T |
| RELATING TO COMMERCIAL LAW - GENERAL REGULATORY PROVISIONS - SERVICE CONTRACTS |
| Introduced By: Senator Walter S. Felag |
| 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 6-56 |
| CONSUMER SERVICE CONTRACTS |
| 6-56-1. Definitions. |
| For purposes of this section, the following terms shall have the following meaning |
| 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 and 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 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 January 1, 2020. |
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| LC001679 |
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