HB1209 (2010) Detail

Relative to service contracts.


HB 1209 – AS INTRODUCED

2010 SESSION

10-2407

01/04

HOUSE BILL 1209

AN ACT relative to service contracts.

SPONSORS: Rep. McEachern, Rock 16

COMMITTEE: Commerce and Consumer Affairs

ANALYSIS

This bill clarifies the law regulating consumer guaranty contracts.

This bill is a request of the insurance department.

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

10-2407

01/04

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Ten

AN ACT relative to service contracts.

Be it Enacted by the Senate and House of Representatives in General Court convened:

1 Consumer Guaranty Contract; Definitions. Amend RSA 415-C:1, III(b) and (c) to read as follows:

(b) Includes the following agreements:

[(1) Service contracts, also known as extended warranties or warranty service contracts, that apply to motor vehicles, homes, and consumer products.]

[(2)] (1) Prepaid legal contracts.

[(3)] (2) Debt cancellation or debt suspension contracts not subject to 12 CFR 37 or state banking law.

[(4)] (3) Contracts deemed by the commissioner by rule or order subject to this chapter.

(c) Does not include any of the following:

(1) Expressed or implied warranties.

(2) Maintenance agreements.

(3) Motor vehicle road service, tourist service and repairs under RSA 407-C.

(4) Service contracts, also known as extended warranties or warranty service contracts, that apply to motor vehicles, homes, and consumer products, including the following:

(A) Warranties, service contracts, or maintenance agreements offered by public utilities on their transmission devices regulated by the public utilities commission.

[(5)] (B) Warranties, service contracts, and maintenance agreements that are conditioned upon or otherwise associated with the sale or supply of heating fuel.

[(6)] (C) Warranties, service contracts, and maintenance agreements sold or offered for sale to persons other than consumers. This provision does not apply to prepaid legal contracts, which may be offered to any governmental corporation, unit, agency, or department, or to any employer or association of employers, a labor union or other similar employee organization, including the trustees of a fund established by such labor union or employee organization. The term “employee” and “employees” shall have the same meaning as are given to such terms for the purpose of writing group life insurance in this state.

2 Contract Disclosures. Amend RSA 415-C:6, III(a) to read as follows:

(a) The total purchase price of the consumer guaranty contract. The purchase price is not required to be preprinted on the [service] contract and may be negotiated at the time of sale with the [service] contract holder.

3 Repeal. RSA 415-C:2, I, relative to manufacturer’s service contracts complying with certain provisions of New Hampshire law, is repealed.

4 Effective Date. This act shall take effect January 1, 2011.