House Bill hb1237

    Florida House of Representatives - 2002                HB 1237

        By Representative Fields






  1                      A bill to be entitled

  2         An act relating to motor vehicle service

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

  4         a definition to include payment of vehicle

  5         protection expenses in connection with vehicle

  6         protection products; providing an effective

  7         date.

  8

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

10

11         Section 1.  Subsection (8) of section 634.011, Florida

12  Statutes, is amended to read:

13         634.011  Definitions.--As used in this part, the term:

14         (8)  "Motor vehicle service agreement" or "service

15  agreement" means any contract or agreement indemnifying the

16  service agreement holder for the motor vehicle listed on the

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

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

19  any mechanical or other component part, or any mechanical or

20  other component part that does not function as it was

21  originally intended; however, nothing in this part shall

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

23  performance guarantees by manufacturers or dealers in

24  connection with the sale of motor vehicles; and provided

25  further, however, transactions exempt under s. 624.125 shall

26  be expressly excluded from this definition and are exempt from

27  the provisions of this part. The term "motor vehicle service

28  agreement" includes any contract or agreement which provides:

29         (a)  The coverage or protection defined in this

30  subsection and is issued or provided in conjunction with an

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






    Florida House of Representatives - 2002                HB 1237

    760-111-02






  1  additive product applied to the motor vehicle which is the

  2  subject of such contract or agreement; or

  3         (b)  For payment of vehicle protection expenses and is

  4  provided in connection with a vehicle protection product. For

  5  purposes of this paragraph:

  6         1.  "Vehicle protection expenses" means payments to the

  7  holder of a service agreement in the event of the failure of a

  8  vehicle protection product to prevent the theft of a motor

  9  vehicle. Such payments may include unreimbursed incidental

10  expenses that may be incurred by the holder of the service

11  agreement only for:

12         a.  Loss or damage to the vehicle as a result of the

13  failure of the vehicle protection product to prevent the theft

14  of the motor vehicle or to not result in the return of the

15  stolen motor vehicle.

16         b.  Incidental expenses that may be incurred by the

17  holder of a service agreement, including expenses for a

18  replacement vehicle, temporary vehicle rental expenses, and

19  registration expenses for a replacement vehicle.

20         2.  "Vehicle protection product" means a product or

21  system that is installed or applied to a motor vehicle or

22  designed to prevent the theft of the motor vehicle.

23         Section 2.  This act shall take effect upon becoming a

24  law.

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26            *****************************************

27                          HOUSE SUMMARY

28
      Revises the definition of motor vehicle service agreement
29    to include payment of vehicle protection expenses in
      connection with a vehicle protection product.
30

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