HB 0825

1
A bill to be entitled
2An act relating to motor vehicle service agreements;
3amending s. 634.011, F.S.; including provision of payments
4for paintless dent removal services within application of
5the term "motor vehicle service agreement"; providing
6definitions; providing an effective date.
7
8Be It Enacted by the Legislature of the State of Florida:
9
10     Section 1.  Subsection (7) of section 634.011, Florida
11Statutes, is amended to read:
12     634.011  Definitions.--As used in this part, the term:
13     (7)  "Motor vehicle service agreement" or "service
14agreement" means any contract or agreement indemnifying the
15service agreement holder for the motor vehicle listed on the
16service agreement and arising out of the ownership, operation,
17and use of the motor vehicle against loss caused by failure of
18any mechanical or other component part, or any mechanical or
19other component part that does not function as it was originally
20intended; however, nothing in this part shall prohibit or affect
21the giving, free of charge, of the usual performance guarantees
22by manufacturers or dealers in connection with the sale of motor
23vehicles. Transactions exempt under s. 624.125 are expressly
24excluded from this definition and are exempt from the provisions
25of this part. The term "motor vehicle service agreement"
26includes any contract or agreement that provides for any of the
27following:
28     (a)  For the coverage or protection defined in this
29subsection and which is issued or provided in conjunction with
30an additive product applied to the motor vehicle that is the
31subject of such contract or agreement.; or
32     (b)  For payment of vehicle protection expenses.
33     1.a.  "Vehicle protection expenses" means a preestablished
34flat amount payable for the loss of or damage to a vehicle or
35expenses incurred by the service agreement holder for loss or
36damage to a covered vehicle, including, but not limited to,
37applicable deductibles under a motor vehicle insurance policy;
38temporary vehicle rental expenses; expenses for a replacement
39vehicle that is at least the same year, make, and model of the
40stolen motor vehicle; sales taxes or registration fees for a
41replacement vehicle that is at least the same year, make, and
42model of the stolen vehicle; or other incidental expenses
43specified in the agreement.
44     b.  "Vehicle protection product" means a product or system
45installed or applied to a motor vehicle or designed to prevent
46the theft of the motor vehicle or assist in the recovery of the
47stolen motor vehicle.
48     2.  Vehicle protection expenses shall be payable in the
49event of loss or damage to the vehicle as a result of the
50failure of the vehicle protection product to prevent the theft
51of the motor vehicle or to assist in the recovery of the stolen
52motor vehicle. Vehicle protection expenses covered under the
53agreement shall be clearly stated in the service agreement form,
54unless the agreement provides for the payment of a
55preestablished flat amount, in which case the service agreement
56form shall clearly identify such amount.
57     3.  Motor vehicle service agreements providing for the
58payment of vehicle protection expenses shall either:
59     a.  Reimburse a service agreement holder for the following
60expenses, at a minimum: deductibles applicable to comprehensive
61coverage under the service agreement holder's motor vehicle
62insurance policy; temporary vehicle rental expenses; sales taxes
63and registration fees on a replacement vehicle that is at least
64the same year, make, and model of the stolen motor vehicle; and
65the difference between the benefits paid to the service
66agreement holder for the stolen vehicle under the service
67agreement holder's comprehensive coverage and the actual cost of
68a replacement vehicle that is at least the same year, make, and
69model of the stolen motor vehicle; or
70     b.  Pay a preestablished flat amount to the service
71agreement holder.
72
73Payments shall not duplicate any benefits or expenses paid to
74the service agreement holder by the insurer providing
75comprehensive coverage under a motor vehicle insurance policy
76covering the stolen motor vehicle; however, the payment of
77vehicle protection expenses at a preestablished flat amount of
78$5,000 or less does not duplicate any benefits or expenses
79payable under any comprehensive motor vehicle insurance policy.
80     (c)  For payment of paintless dent removal services by a
81paintless dent removal provider. For purposes of this paragraph:
82     1.  "Paintless dent removal services" means the process of
83removing dents, dings, creases, and hail damage from vehicles
84without affecting the original paint finish. Paintless dent
85removal does not include services that involve vehicle panel
86replacement, sanding, bonding, or painting.
87     2.  "Paintless dent removal provider" means a company whose
88primary business consists of providing paintless dent removal
89services.
90     Section 2.  This act shall take effect July 1, 2005.


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