A New York 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.
The 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 Assembly bill.