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House Co-Sponsorship Memoranda
House of Representatives
Session of 2015 - 2016
Regular Session
MEMORANDUM
| Posted: | June 4, 2015 11:40 AM |
|---|---|
| From: | Representative Justin J. Simmons |
| To: | All House members |
| Subject: | Insurance Service Contract Exclusion |
| Motor vehicle ancillary products are designed to protect new or used automobiles from damage and keep an automobile looking as good as the day it was purchased. Motor vehicle ancillary products include such services as paintless dent repair, windshield repair or replacement, tire and wheel road hazard coverage, vehicle key and key-fob replacement and vehicle protection products such as window etching, ignition lock-out or satellite tracking systems. During the 2009-2010 Session of the Pennsylvania General Assembly, legislation was enacted (Act 68 or 2010) that created specific provisions in the Insurance Company Law of 1921 defining service contracts and specifying that such contracts were distinct from “the business of insurance.” Recently, it has come to my attention that the sale of motor vehicle ancillary products in Pennsylvania is not included in this service contract exclusion and therefor may be considered “insurance” under Pennsylvania law. Because these products are not expressly regulated within the service contract law or as stand-alone products, they could be considered insurance. The attached legislation would add “motor vehicle ancillary products” to the service contract exclusion under Pennsylvania law and add specific provisions detailing the type of products and coverage available to consumers. This legislation follows similar laws enacted in California, Nebraska, New York, Ohio, Texas, Washington Wisconsin and Wyoming, and clarifies the status of these motor vehicle ancillary products and ensures that they are sold in a consistent manner. I hope you will consider supporting this legislation by signing on as a co-sponsor. If you have any questions, please contact my Harrisburg office at (717) 783-1673 or email at lnissly@pahousegop.com. |
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| View Attachment | ||
Introduced as HB1384