Vehicle service contracts.

21LSO-0679
2021
STATE OF WYOMING
21LSO-0679
Numbered
2.0

HOUSE BILL NO. HB0232

Vehicle service contracts.

Sponsored by: Representative(s) Brown, Burkhart and Olsen and Senator(s) Landen

A BILL

for

AN ACT relating to the insurance code; amending the scope of service contracts and theft protection warranties; specifying that theft protection warranties are not insurance; amending and creating definitions; and providing for an effective date.

Be It Enacted by the Legislature of the State of Wyoming:

Section 1.

W.S. 26
‑
49
‑
101(d)(ii) and by creating a new paragraph (iv), 26
‑
49
‑
102(a)(ix)(B), (C), by creating new subparagraphs (E) and (F) and by creating new paragraphs (xii) and (xiii) are amended to read:

26
‑
49
‑
101.

Scope and purposes.

(d)

This article does not apply to:

(ii)

To mechanical breakdown insurance organizations who maintain a license pursuant to W.S. 26
‑
37
‑
106;
or

(iv)

Theft protection programs or their accompanying warranties. Theft protection program warranties shall not be considered insurance.

26
‑
49
‑
102.

Definitions.

(a)

As used in this article:

(ix)

"Service contract" means a contract or agreement for a separately stated consideration for a specific duration to perform the repair, replacement or maintenance of property or indemnification for repair, replacement or maintenance, for the operational or structural failure due to a defect in materials or workmanship or normal wear and tear, with or without additional provision for incidental payment or indemnity under limited circumstances, including, but not limited to,
towing, rental and emergency road service. Service contracts may provide for the repair, replacement or maintenance of property for damage resulting from power surges and accidental damage from handling. "Service contract" also includes a contract or agreement for one (1) or more of the following:

(B)

The repair or replacement of tires or wheels damaged as a result of coming into contact with ordinary road hazards
.

including, but not limited to, potholes, curbs, rocks, wood debris, metal parts, glass, plastic or composite scraps.
A contract or agreement meeting the definition set forth in this subparagraph in which the party obligated to perform is either a tire or wheel manufacturer or a motor vehicle manufacturer is exempt from the requirements of this chapter;

(C)

The repair of small windshield chips or cracks
but which expressly excludes
in or
the replacement of the entire windshield
as a result of damage caused by road hazards
;

(E)

The replacement of a motor vehicle key or key fob in the event that the key or key fob becomes inoperable, lost or stolen;

(F)

In conjunction with a motor vehicle leased for use, the repair, replacement or maintenance of property or indemnification for repair, replacement or maintenance due to excess wear and use, damage to 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 or excess mileage that result in a lease
‑
end charge, or any other charge for damage that is deemed as excess wear and use by a lessor under a motor vehicle lease, provided that any repair, replacement, maintenance or indemnification shall not exceed the purchase price of the vehicle.

(xii)

"Incidental payment" means expenses specified in a theft protection program warranty that are incurred by the warranty holder due to the failure of a theft protection program to perform as provided in the contract. Incidental payments may include insurance policy deductibles, rental vehicle charges, the difference between
the actual value of the stolen vehicle at the time of theft and the cost of a replacement vehicle, sales taxes, registration fees, transaction fees and mechanical inspection fees. Incidental payments may be reimbursements in either a fixed amount specified in the theft protection program warranty or by use of a formula itemizing specific incidental payments that may be due to the warranty holder;

(xiii)

"Road hazard" means a hazard that is encountered while driving a motor vehicle and that may include, but is not limited to, potholes, rocks, wood debris, metal parts, glass, plastic, curbs or composite scraps.

Section 2
.

This act is effective July 1, 2021
.

(END)

1
HB0232