HB 0825

1	A bill to be entitled
2	An act relating to motor vehicle service agreements;
3	amending s. 634.011, F.S.; including provision of payments
4	for paintless dent removal services within application of
5	the term "motor vehicle service agreement"; providing
6	definitions; providing an effective date.
7
8	Be It Enacted by the Legislature of the State of Florida:
9
10	Section 1.  Subsection (7) of section 634.011, Florida
11	Statutes, is amended to read:
12	634.011  Definitions.--As used in this part, the term:
13	(7)  "Motor vehicle service agreement" or "service
14	agreement" means any contract or agreement indemnifying the
15	service agreement holder for the motor vehicle listed on the
16	service agreement and arising out of the ownership, operation,
17	and use of the motor vehicle against loss caused by failure of
18	any mechanical or other component part, or any mechanical or
19	other component part that does not function as it was originally
20	intended; however, nothing in this part shall prohibit or affect
21	the giving, free of charge, of the usual performance guarantees
22	by manufacturers or dealers in connection with the sale of motor
23	vehicles. Transactions exempt under s. 624.125 are expressly
24	excluded from this definition and are exempt from the provisions
25	of this part. The term "motor vehicle service agreement"
26	includes any contract or agreement that provides for any of the
27	following:
28	(a)  For the coverage or protection defined in this
29	subsection and which is issued or provided in conjunction with
30	an additive product applied to the motor vehicle that is the
31	subject of such contract or agreement.; or
32	(b)  For payment of vehicle protection expenses.
33	1.a.  "Vehicle protection expenses" means a preestablished
34	flat amount payable for the loss of or damage to a vehicle or
35	expenses incurred by the service agreement holder for loss or
36	damage to a covered vehicle, including, but not limited to,
37	applicable deductibles under a motor vehicle insurance policy;
38	temporary vehicle rental expenses; expenses for a replacement
39	vehicle that is at least the same year, make, and model of the
40	stolen motor vehicle; sales taxes or registration fees for a
41	replacement vehicle that is at least the same year, make, and
42	model of the stolen vehicle; or other incidental expenses
43	specified in the agreement.
44	b.  "Vehicle protection product" means a product or system
45	installed or applied to a motor vehicle or designed to prevent
46	the theft of the motor vehicle or assist in the recovery of the
47	stolen motor vehicle.
48	2.  Vehicle protection expenses shall be payable in the
49	event of loss or damage to the vehicle as a result of the
50	failure of the vehicle protection product to prevent the theft
51	of the motor vehicle or to assist in the recovery of the stolen
52	motor vehicle. Vehicle protection expenses covered under the
53	agreement shall be clearly stated in the service agreement form,
54	unless the agreement provides for the payment of a
55	preestablished flat amount, in which case the service agreement
56	form shall clearly identify such amount.
57	3.  Motor vehicle service agreements providing for the
58	payment of vehicle protection expenses shall either:
59	a.  Reimburse a service agreement holder for the following
60	expenses, at a minimum: deductibles applicable to comprehensive
61	coverage under the service agreement holder's motor vehicle
62	insurance policy; temporary vehicle rental expenses; sales taxes
63	and registration fees on a replacement vehicle that is at least
64	the same year, make, and model of the stolen motor vehicle; and
65	the difference between the benefits paid to the service
66	agreement holder for the stolen vehicle under the service
67	agreement holder's comprehensive coverage and the actual cost of
68	a replacement vehicle that is at least the same year, make, and
69	model of the stolen motor vehicle; or
70	b.  Pay a preestablished flat amount to the service
71	agreement holder.
72
73	Payments shall not duplicate any benefits or expenses paid to
74	the service agreement holder by the insurer providing
75	comprehensive coverage under a motor vehicle insurance policy
76	covering the stolen motor vehicle; however, the payment of
77	vehicle protection expenses at a preestablished flat amount of
78	$5,000 or less does not duplicate any benefits or expenses
79	payable under any comprehensive motor vehicle insurance policy.
80	(c)  For payment of paintless dent removal services by a
81	paintless dent removal provider. For purposes of this paragraph:
82	1.  "Paintless dent removal services" means the process of
83	removing dents, dings, creases, and hail damage from vehicles
84	without affecting the original paint finish. Paintless dent
85	removal does not include services that involve vehicle panel
86	replacement, sanding, bonding, or painting.
87	2.  "Paintless dent removal provider" means a company whose
88	primary business consists of providing paintless dent removal
89	services.
90	Section 2.  This act shall take effect July 1, 2005.

CODING: Words stricken are deletions; words underlined are additions.