AN ACT TO PROVIDE A LEGAL FRAMEWORK FOR THE SALE AND REGULATION OF MOTOR VEHICLE ANCILLARY ANTI-THEFT PROTECTION CONTRACTS IN NORTH CAROLINA. Enacted October 22, 2015. Effective October 1, 2015.
Summary date: Oct 29 2015 - More information
Summary date: Sep 22 2015 - More information
House committee substitute makes the following changes to the 2nd edition.
Adds a sentence to GS 66-370 stating that the terms insurance contract and motor vehicle service agreement do not include an agreement where an employer provides mileage reimbursement and incidental maintenance and repairs to employees using personal vehicles for business purposes.
Replaces the term ancillary protection product with ancillary anti-theft protection program and adjusts the statutory definition by (1) removing reference to protective chemical or substances systems, (2) replacing references to loss from "a specific cause" to "loss from theft," and (3) including chemicals applied to interior or exterior surfaces of a vehicle among items that fall outside the definition.
Replaces the term ancillary protection product warranty with ancillary anti-theft protection program warranty and removes a list of items included within the meaning of incidental costs. Clarifies that the program warranty reimburses for costs that result from the failure of the protection program to perform pursuant to its warranty.
Deletes from the definition of motor vehicle service agreement certain items that fall outside the definition. These items are (1) ancillary protection product warranties and (2) coverage for the repair or replacement due to damage to the interior or exterior of a vehicle.
Makes conforming changes.
Changes the long title.
Summary date: Apr 15 2015 - More information
Senate committee substitute makes the following changes to the 1st edition.
Amends GS 66-370 to add that ancillary protection product must also include an ancillary protection product warranty. Adds and defines the term ancillary protection product warranty. Amends the items excluded from the term "motor vehicle service agreement" to include a contract or agreement guaranteeing the performance of parts or lubricants manufactured or distributed by the guarantor and sold for use in connection with a motor vehicle where no additional consideration is paid or given to the grantor for the contract or agreement beyond the price of the parts or lubricants, and ancillary protection product warranties.
Amends GS 58-1-15 to add that an ancillary protection product warranty that guarantees indemnity for specified conditions is not a contract of insurance. Provides that service agreements on home appliances or motor vehicles (was, limited to those made by any person other than the manufacturer, distributor, or seller) are not contracts of insurance and are exempt from GS Chapter 58 unless otherwise expressly provided.
Summary date: Mar 5 2015 - More information
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.
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