Auto Glass-Related Legislation Moves Forward in Louisiana, Oklahoma and New York

The Louisiana House of Representatives has passed a bill that “moves the regulation of motor vehicle service contract providers from the Dept. of Insurance to the secretary of state.” Meanwhile, an Oklahoma bill related to service warranties has passed the state’s Senate and is now under review in the House, and, in New York, a bill related to vehicle service contracts has passed the state’s Senate and is now under the review of the New York Assembly’s Insurance Committee.

Louisiana

The Louisiana bill expands the term “service contract” to “include a contract or agreement for … the repair of chips or cracks in or the replacement of motor vehicle windshields as a result of damage caused by road hazards.”

The bill, HB 522, was pre-filed on March 2 by Rep. Paula Davis and was referred to the Committee on Insurance. It was read by the committee for the first time on March 12; reported with amendments on March 28; and read, amended, ordered engrossed, and passed to its third reading on March 29. It passed the House unanimously in an amended format on April 5 and now is under review of the Senate.

Click here for the full text of the amended Louisiana bill that passed the House.

Oklahoma

The Oklahoma bill, SB 1142, relates to “service warranties; amending [the sections of the law] which relate to definitions, audited financial statements, duration of suspension, annual statement filing and examinations of service warranty associations; modifying definitions; requiring certain financial statements to be audited and submitted to Insurance Commissioner under certain circumstances; updating statutory references; and providing an effective date.”

“Motor vehicle ancillary service” includes “the repair of chips or cracks in or the replacement of motor vehicle windshields as a result of damage caused by road hazards,” according to the bill.

The bill was introduced to the Oklahoma Senate on February 5. It passed the Senate in an amended format on March 14. It now is under the review of the House Insurance Committee, which has proposed further amendments as well.

Click here for the current full text of the Oklahoma bill.

New York

The New York bill, S 5847, “relates to expanding the availability of meaningful service contracts to protect New Yorkers leasing automobiles for their personal use from unanticipated ‘lease-end’ charges related to excess use or wear and tear of the leased vehicle.”

The bill proposes to add the following language to subsection (k) of section 7902 of the state’s insurance law:

“In conjunction with a motor vehicle leased for personal use, such term shall also mean a contract to perform the repair, replacement or maintenance of property, or to provide indemnification for repair, replacement or maintenance, due to excess wear and use or damage for items such as tires, paint cracks or chips, interior stains, rips or scratches, exterior dents or scratches, windshield cracks or chips, missing interior or exterior parts that result in a lease-end charge not otherwise covered by a service agreement or warranty, provided any such payment shall not exceed the purchase price of the vehicle.”

The bill originally was introduced to the New York Senate in May 2017 and died in the Assembly. It was returned to the Senate on January 3 and advanced to its third reading in the Insurance Committee on January 29. It passed the Senate on March 22 and was referred to the Assembly’s Insurance Committee.

Click here for the full text of the New York Assembly bill.

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