Senate Bill sb2006

    Florida Senate - 2005                                  SB 2006

    By Senator Garcia





    40-1159-05

  1                      A bill to be entitled

  2         An act relating to motor vehicle service

  3         agreements; amending s. 634.011, F.S.;

  4         including paintless dent-removal in the

  5         services that may be covered by such

  6         agreements; providing an effective date.

  7  

  8  Be It Enacted by the Legislature of the State of Florida:

  9  

10         Section 1.  Paragraph (c) is added to subsection (7) of

11  section 634.011, Florida Statutes, to read:

12         634.011  Definitions.--As used in this part, the term:

13         (7)  "Motor vehicle service agreement" or "service

14  agreement" means any contract or agreement indemnifying the

15  service agreement holder for the motor vehicle listed on the

16  service agreement and arising out of the ownership, operation,

17  and use of the motor vehicle against loss caused by failure of

18  any mechanical or other component part, or any mechanical or

19  other component part that does not function as it was

20  originally intended; however, nothing in this part shall

21  prohibit or affect the giving, free of charge, of the usual

22  performance guarantees by manufacturers or dealers in

23  connection with the sale of motor vehicles. Transactions

24  exempt under s. 624.125 are expressly excluded from this

25  definition and are exempt from the provisions of this part.

26  The term "motor vehicle service agreement" includes any

27  contract or agreement that provides:

28         (a)  For the coverage or protection defined in this

29  subsection and which is issued or provided in conjunction with

30  an additive product applied to the motor vehicle that is the

31  subject of such contract or agreement; or

                                  1

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2005                                  SB 2006
    40-1159-05




 1         (b)  For payment of vehicle protection expenses.

 2         1.a.  "Vehicle protection expenses" means a

 3  preestablished flat amount payable for the loss of or damage

 4  to a vehicle or expenses incurred by the service agreement

 5  holder for loss or damage to a covered vehicle, including, but

 6  not limited to, applicable deductibles under a motor vehicle

 7  insurance policy; temporary vehicle rental expenses; expenses

 8  for a replacement vehicle that is at least the same year,

 9  make, and model of the stolen motor vehicle; sales taxes or

10  registration fees for a replacement vehicle that is at least

11  the same year, make, and model of the stolen vehicle; or other

12  incidental expenses specified in the agreement.

13         b.  "Vehicle protection product" means a product or

14  system installed or applied to a motor vehicle or designed to

15  prevent the theft of the motor vehicle or assist in the

16  recovery of the stolen motor vehicle.

17         2.  Vehicle protection expenses shall be payable in the

18  event of loss or damage to the vehicle as a result of the

19  failure of the vehicle protection product to prevent the theft

20  of the motor vehicle or to assist in the recovery of the

21  stolen motor vehicle. Vehicle protection expenses covered

22  under the agreement shall be clearly stated in the service

23  agreement form, unless the agreement provides for the payment

24  of a preestablished flat amount, in which case the service

25  agreement form shall clearly identify such amount.

26         3.  Motor vehicle service agreements providing for the

27  payment of vehicle protection expenses shall either:

28         a.  Reimburse a service agreement holder for the

29  following expenses, at a minimum: deductibles applicable to

30  comprehensive coverage under the service agreement holder's

31  motor vehicle insurance policy; temporary vehicle rental

                                  2

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2005                                  SB 2006
    40-1159-05




 1  expenses; sales taxes and registration fees on a replacement

 2  vehicle that is at least the same year, make, and model of the

 3  stolen motor vehicle; and the difference between the benefits

 4  paid to the service agreement holder for the stolen vehicle

 5  under the service agreement holder's comprehensive coverage

 6  and the actual cost of a replacement vehicle that is at least

 7  the same year, make, and model of the stolen motor vehicle; or

 8         b.  Pay a preestablished flat amount to the service

 9  agreement holder.

10  

11  Payments shall not duplicate any benefits or expenses paid to

12  the service agreement holder by the insurer providing

13  comprehensive coverage under a motor vehicle insurance policy

14  covering the stolen motor vehicle; however, the payment of

15  vehicle protection expenses at a preestablished flat amount of

16  $5,000 or less does not duplicate any benefits or expenses

17  payable under any comprehensive motor vehicle insurance

18  policy; or.

19         (c)1.  For the payment for paintless dent-removal

20  services provided by a company whose primary business is

21  providing such services.

22         2.  "Paintless dent-removal" means the process of

23  removing dents, dings, and creases, including hail damage,

24  from a vehicle without affecting the existing paint finish,

25  but does not include services that involve the replacement of

26  vehicle body panels or sanding, bonding, or painting.

27         Section 2.  This act shall take effect July 1, 2005.

28  

29            *****************************************

30                          SENATE SUMMARY

31    Includes paintless dent-removal in the services that may
      be covered by motor vehicle service agreements.
                                  3

CODING: Words stricken are deletions; words underlined are additions.