Enrolled HB 120: Excluding service contracts from regulation as insurance; relating to insurance licensing for motor vehicle service contracts and home warranties; and providing for an effective date.
00Enrolled HB 120 01 Excluding service contracts from regulation as insurance; relating to insurance licensing for 02 motor vehicle service contracts and home warranties; and providing for an effective date. 03 _______________ 04 * Section 1. AS 21.03.021 is amended by adding a new subsection to read: 05 (e) This title does not apply to a service contract offered, issued for delivery, 06 delivered, or renewed in this state. In this subsection, "service contract" 07 (1) means a service contract or agreement for a separate or additional 08 consideration, for a specific duration, to 09 (A) maintain, service, repair, or replace tangible personal 10 property, or to indemnify for repair, replacement, or maintenance, for an 11 operational or structural failure due to a defect in materials or workmanship or 12 normal wear and tear, with or without additional provision for incidental 13 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; or 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 (2) does not include 10 (A) mechanical breakdown insurance; 11 (B) a contract that requires an indemnity payment per incident 12 and the payment exceeds the purchase price of the property serviced; 13 (C) a contract to provide service on a motor vehicle subject to 14 registration under AS 28.10.011; or 15 (D) a home warranty; in this subparagraph, "home warranty" 16 means a warranty that covers the entire home and does not include a warranty 17 limited to a household system or appliance. 18 * Sec. 2. AS 21.27.010(h) is amended to read: 19 (h) This chapter does not apply to a person 20 (1) licensed to practice as an attorney at law while the person is acting 21 as an attorney at law; or 22 (2) who sells, solicits, or negotiates a 23 (A) service contract on a motor vehicle subject to 24 registration under AS 28.10.011; or 25 (B) home warranty; in this subparagraph, "home 26 warranty" has the meaning given in AS 21.03.021(e)(2)(D). 27 * Sec. 3. This Act takes effect immediately under AS 01.10.070(c).