CSHB 120(L&C): "An Act excluding service contracts from regulation as insurance; relating to insurance licensing for motor vehicle service contracts or home warranties; and providing for an effective date."
00 CS FOR HOUSE BILL NO. 120(L&C) 01 "An Act excluding service contracts from regulation as insurance; relating to insurance 02 licensing for motor vehicle service contracts or home warranties; and providing for an 03 effective date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. AS 21.03.021 is amended by adding a new subsection to read: 06 (e) This title does not apply to a service contract offered, issued for delivery, 07 delivered, or renewed in this state. In this subsection, "service contract" 08 (1) means a contract or agreement for a separate or additional 09 consideration, for a specific duration, to 10 (A) maintain, service, repair, or replace tangible personal 11 property, or to indemnify for repair, replacement, or maintenance, for an 12 operational or structural failure due to a defect in materials or workmanship or 13 normal wear and tear, with or without additional provision for incidental 14 indemnity payments when service, repair, or replacement is not reasonably or
01 commercially feasible; 02 (B) repair, replace, or maintain tangible personal property 03 damaged as a result of power surges or as a result of accidental damage from 04 the handling of property damaged by power surges; 05 (C) repair, replace, or maintain household consumer goods, 06 household appliances, and household systems, including damage resulting 07 from operational or structural failure due to a defect in materials or 08 workmanship or normal wear and tear; 09 (D) provide prepaid legal services; 10 (2) does not include 11 (A) mechanical breakdown insurance; 12 (B) a contract that requires an indemnity payment per incident 13 and the payment exceeds the purchase price of the property serviced; 14 (C) retainers paid to licensed attorneys; 15 (D) insurance on a motor vehicle subject to registration under 16 AS 28.10.011; or 17 (E) a home warranty, except as described under (1)(C) of this 18 subsection. 19 * Sec. 2. AS 21.27.010(h) is amended to read: 20 (h) This chapter does not apply to a person 21 (1) licensed to practice as an attorney at law while the person is acting 22 as an attorney at law; or 23 (2) who sells, solicits, or negotiates a service contract on a motor 24 vehicle subject to registration under AS 28.10.011 or who sells, solicits, or 25 negotiates a home warranty. 26 * Sec. 3. This Act takes effect immediately under AS 01.10.070(c).