Insurance: warranty: catalytic converter.

Plain English Breakdown

The exact details of the notice sellers must disclose are not provided in the summary.

Insurance Warranty for Catalytic Converters

This law changes warranty rules for products that protect vehicles or their catalytic converters from theft, and requires sellers to disclose specific information if they sell products that mark catalytic converters permanently.

What This Bill Does

• Limits the warranty benefit to the actual cost of replacing a stolen catalytic converter if the product only covers the catalytic converter.
• Clarifies that benefits are payable when either the whole vehicle or just its catalytic converter is stolen.
• Expands what counts as a vehicle protection product to include devices, systems, or services designed to prevent unauthorized removal of catalytic converters.
• Requires sellers to disclose specific information if they sell products that mark catalytic converters permanently.

Who It Names or Affects

• People who buy warranties for their vehicles or catalytic converters
• Businesses selling vehicle protection products and catalytic converter marking services

Terms To Know

Vehicle Protection Product

A device, system, or service installed on a car to prevent theft of the whole vehicle or its parts.

Express Warranty

A written promise by a seller that guarantees certain benefits if something goes wrong with a product.

Limits and Unknowns

• The bill does not specify what happens to warranties for products that do not cover catalytic converters.
• It is unclear how this law will affect insurance policies related to vehicle theft.
• The exact details of the notice sellers must disclose are not provided in the summary.

Official Summary Text

AB 646, as amended, Wallis.
Insurance: warranty: catalytic converter.
Under existing law, a warranty issued by the warrantor of a vehicle protection product constitutes an express warranty and does not constitute automobile insurance if the warrantor complies with various requirements, including that the warranty is in writing and provides, among other things, that the benefits are limited to the difference between the actual cash value of the stolen vehicle and the vehicle’s replacement cost, temporary vehicle rental expenses, reimbursement for insurance policy deductible, and registration fees and taxes on a replacement vehicle or a fixed amount for those benefits, and that the benefit is payable upon the theft of the vehicle. Existing law defines a vehicle protection product for these purposes to mean a vehicle protection device, system, or service that is installed on, or applied to, a vehicle, is designed to deter the theft of the vehicle, and
includes a written warranty that provides specified incidental costs if the product fails to deter the theft of the vehicle.
This bill would limit the warranty benefit to the actual cost of replacing the catalytic converter if the warranty covers only the vehicle’s catalytic converter. The bill would also clarify that the benefit is payable upon the theft of the vehicle or a catalytic converter attached to the vehicle. The bill would expand the definition of a vehicle protection product to include a protection device, system, or service that is installed on, or applied to, a vehicle to deter the theft of the vehicle or a catalytic converter attached to the vehicle and that includes a written warranty that provides specified incidental costs if the product fails to do so.
Existing law requires, except as specified, a dealer or person holding a retail seller’s permit who sells new or used vehicles equipped with a catalytic converter to permanently mark the catalytic converter with the vehicle identification number of the vehicle to which it is attached.
This bill would expand the definition of a vehicle protection product to include a physical device, system, or service designed to prevent the unauthorized removal of a vehicle’s catalytic converter, and would limit the warranty benefit for this vehicle protection product to the actual cash value and replacement cost of the catalytic converter, temporary vehicle rental expenses, and reimbursement for the insurance policy deductible. The bill would require the benefit to be payable upon the theft of the catalytic converter from the vehicle, as specified. The bill would also require a seller to disclose a specified notice if this vehicle protection
product is a body part marking product designed to permanently mark the catalytic converter.

Current Bill Text

Download Bill PDF