Senate Bill sb2102

    Florida Senate - 2002                                  SB 2102

    By Senator Villalobos





    37-1536-02

  1                      A bill to be entitled

  2         An act relating to motor vehicle service

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

  4         the definition of the term "motor vehicle

  5         service agreement" to include contracts

  6         covering vehicle-protection products; defining

  7         the terms "vehicle-protection expenses" and

  8         "vehicle-protection product"; providing an

  9         effective date.

10

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

12

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

14  Statutes, is amended and subsections (18) and (19) are added

15  to that section to read:

16         634.011  Definitions.--As used in this part, the term:

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

18  agreement" means any contract or agreement indemnifying the

19  service agreement holder for the motor vehicle listed on the

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

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

22  any mechanical or other component part, or any mechanical or

23  other component part that does not function as it was

24  originally intended; however, nothing in this part shall

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

26  performance guarantees by manufacturers or dealers in

27  connection with the sale of motor vehicles; and provided

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

29  be expressly excluded from this definition and are exempt from

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

31  agreement" includes any contract or agreement which provides

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






    Florida Senate - 2002                                  SB 2102
    37-1536-02




  1  the coverage or protection defined in this subsection and is

  2  issued or provided in conjunction with an additive product

  3  applied to the motor vehicle which is the subject of such

  4  contract or agreement and also includes any contract or

  5  agreement that provides payment for vehicle-protection

  6  expenses and is provided in conjunction with a

  7  vehicle-protection product.

  8         (18)  "Vehicle-protection expenses" means payments to a

  9  service agreement holder for the failure of a vehicle

10  protection product to prevent the theft of a motor vehicle.

11  Payments to a service agreement holder under this subsection

12  include unreimbursed incidental expenses incurred by the

13  service agreement holder, including only:

14         (a)  Loss or damage to the vehicle as a result of the

15  failure of the vehicle-protection product to prevent the theft

16  or not result in the return of a stolen motor vehicle; and

17         (b)  Expenses for a replacement vehicle, temporary

18  vehicle rental expenses, and registration expenses for a

19  replacement vehicle.

20         (19)  "Vehicle-protection product" means a product or

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

22  designed to prevent the theft of that vehicle.

23         Section 2.  This act shall take effect July 1, 2002.

24

25            *****************************************

26                          SENATE SUMMARY

27    For purposes of provisions relating to motor vehicle
      service agreements, the bill revises the definition of
28    such agreements to include contracts providing coverage
      for vehicle-protection products. Defines the terms
29    "vehicle-protection expenses" and "vehicle-protection
      product."
30

31

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