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| THE GENERAL ASSEMBLY OF PENNSYLVANIA |
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| SENATE BILL |
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| INTRODUCED BY D. WHITE, STACK, WILLIAMS, M. WHITE, PILEGGI, WAUGH, MENSCH AND WARD, APRIL 27, 2010 |
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| REFERRED TO BANKING AND INSURANCE, APRIL 27, 2010 |
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| AN ACT |
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1 | Amending the act of May 17, 1921 (P.L.682, No.284), entitled "An |
2 | act relating to insurance; amending, revising, and |
3 | consolidating the law providing for the incorporation of |
4 | insurance companies, and the regulation, supervision, and |
5 | protection of home and foreign insurance companies, Lloyds |
6 | associations, reciprocal and inter-insurance exchanges, and |
7 | fire insurance rating bureaus, and the regulation and |
8 | supervision of insurance carried by such companies, |
9 | associations, and exchanges, including insurance carried by |
10 | the State Workmen's Insurance Fund; providing penalties; and |
11 | repealing existing laws," further providing for marketing and |
12 | administration of service contracts being distinct from the |
13 | business of insurance. |
14 | The General Assembly of the Commonwealth of Pennsylvania |
15 | hereby enacts as follows: |
16 | Section 1. The act of May 17, 1921 (P.L.682, No.284), known |
17 | as The Insurance Company Law of 1921, is amended by adding a |
18 | section to read: |
19 | Section 358. Service Contract Exclusion.--(a) The |
20 | marketing, sale, offering for sale, issuance, making, proposing |
21 | to make and administration of a service contract shall not be |
22 | construed to be the business of insurance and shall be exempt |
23 | from regulation as insurance. |
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1 | (b) "Service contract" means a contract or an agreement for |
2 | a separately stated consideration for a specific duration to |
3 | perform the repair, replacement or maintenance of property or |
4 | indemnification for repair, replacement or maintenance, for the |
5 | operational or structural failure due to a defect in materials, |
6 | workmanship or normal wear and tear with or without additional |
7 | provisions for incidental payment of indemnity under limited |
8 | circumstances, including, but not limited to, towing, rental and |
9 | emergency road service. Service contracts may provide for the |
10 | repair, replacement or maintenance of property for damage |
11 | resulting from power surges or accidental damage from handling. |
12 | Section 2. This act shall take effect in 60 days. |
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