PRINTER'S NO. 1919
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
1384
Session of
2015
INTRODUCED BY SIMMONS, THOMAS, QUINN, MURT, McGINNIS, SANKEY,
MACKENZIE, REGAN, EVANKOVICH, KAUFER, WARNER, COHEN AND
GABLER, JUNE 24, 2015
REFERRED TO COMMITTEE ON INSURANCE, JUNE 24, 2015
AN ACT
Amending the act of May 17, 1921 (P.L.682, No.284), entitled "An
act relating to insurance; amending, revising, and
consolidating the law providing for the incorporation of
insurance companies, and the regulation, supervision, and
protection of home and foreign insurance companies, Lloyds
associations, reciprocal and inter-insurance exchanges, and
fire insurance rating bureaus, and the regulation and
supervision of insurance carried by such companies,
associations, and exchanges, including insurance carried by
the State Workmen's Insurance Fund; providing penalties; and
repealing existing laws," in general provisions relating to
insurance companies, associations and exchanges, further
providing for service contract exclusion.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 358 of the act of May 17, 1921 (P.L.682,
No.284), known as The Insurance Company Law of 1921, added
October 7, 2010 (P.L.481, No.68), is amended to read:
Section 358. Service Contract Exclusion.--(a) The
marketing, sale, offering for sale, issuance, making, proposing
to make and administration of a service contract shall not be
construed to be the business of insurance and shall be exempt
from regulation as insurance.
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(b) ["Service] For the purposes of this section, the term
"service contract" means a contract or an agreement for a
separately stated consideration for a specific duration:
(1) to perform the service, repair, replacement or
maintenance of property or indemnification for service, repair,
replacement or maintenance, for the operational or structural
failure due to a defect in materials, workmanship 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[.
Service contracts may provide for];
(2) the repair or replacement of tires or wheels on a motor
vehicle damaged as a result of coming into contact with road
hazards;
(3) 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;
(4) the repair of chips or cracks in or the replacement of
motor vehicle windshields as a result of damage caused by road
hazards;
(5) 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;
(6) incidental costs resulting from the failure of an
ancillary antitheft protection product, such as a device or
system that is installed on or applied to a motor vehicle to
prevent loss or damage to the motor vehicle from theft. Such
products include, but are not limited to, alarm systems, body-
part-marking products, steering locks, window etch products,
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pedal and ignition locks, fuel and ignition kill switches and
electronic, radio and satellite tracking devices;
(7) the service, repair, replacement or maintenance of
property for damage resulting from power surges or accidental
damage from handling, provided, however, that an insurance
company providing coverage or payment for towing, rental,
emergency road service or mechanical breakdown insurance shall
not be considered to be providing a service contract; and
further provided that automobile club coverage or payment of
towing, rental or emergency road service shall not be considered
a service contract and shall not be regulated as insurance[.];
or
(8) any other service which may be approved by the
commissioner, if not inconsistent with other provisions of this
section.
The term does not include a contract or agreement to provide for
the repair of or indemnification for the repair of a motor
vehicle due to loss or damage resulting from the failure of a
fuel or oil additive or other chemical applied to the engine,
transmission or fuel system of a motor vehicle.
Section 2. This act shall take effect in 60 days.
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