Bill Summary for S 195 (2015-2016)

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Summary date: 

Mar 5 2015
S.L. 2015-283

Bill Information:

View NCGA Bill Details2015-2016 Session
Senate Bill 195 (Public) Filed Thursday, March 5, 2015
AN ACT TO PROVIDE A LEGAL FRAMEWORK FOR THE SALE AND REGULATION OF MOTOR VEHICLE ANCILLARY ANTI-THEFT PROTECTION CONTRACTS IN NORTH CAROLINA.
Intro. by Meredith.

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Bill summary

Amends GS 66-370 (motor vehicle service agreement companies) to provide that the statute's provisions do not apply to motor vehicle maintenance agreements. Adds definitions for "ancillary protection product" and "motor vehicle failure" to the definitions that apply in this statute and GS 66-371, 66-372, and 66-373. Expands the definition for motor vehicle service agreement to five specified services and types of services for which the holder of the contract or agreement is entitled to performance or indemnification. Provides for performance or indemnification of service not listed with approval by the Commissioner of Insurance, providing doing so is not inconsistent with other provisions of this Article. Adds that a motor vehicle service agreement does not include coverage for the repair or replacement of damage to the interior surfaces, or repair or replacement of damage to the exterior paint or finish, unless coverage is offered in connection with the sale of an ancillary protection product.

Amends GS 58-1-15 to provide that service agreements on home appliances or motor vehicles, offered in compliance with Article 43 of GS Chapter 66, and made by any person other than the manufacturer, distributor, or seller of the appliance or vehicle, are not insurance contracts and such service agreements are exempt from all of the provisions of GS Chapter 58 except as otherwise expressly provided. Makes a conforming change to GS 66-372(e)(2).

Becomes effective July 1, 2015.