Bill No.: HB0090                  Drafter:  LGC

LSO No.:  10LSO-0255              Effective Date:  7/1/2010

Enrolled Act No.:  HEA0032

Chapter No.:

Prime Sponsor:     Representative Gingery

Catch Title:       Insurance-service contracts.

Subject:            Regulation of service contracts under insurance code.

Summary/Major Elements:

· Currently, contracts for the minor repair of automobile dents, dings, tire damage and other minor damage are considered insurance contracts under the insurance code.

· This act brings such contracts into the definition of "service contracts" regulated differently under the insurance code.

· The act defines "service contracts" to include contracts for one or more of the following:

· The removal of dents, dings or creases that can be repaired using paintless dent removal and without replacing body panels, sanding, bonding or painting;

· Repair or replacement of tires or wheels damaged by ordinary road hazards unless the contract is with a tire or wheel manufacturer;

· Repair of small windshield chips or cracks without replacement of the entire windshield; and

· Repair of damage to interior components caused by wear and tear without replacement of the interior components.