SB 119 – AS AMENDED BY THE SENATE
03/12/2015 0706s
2015 SESSION
01/04
SENATE BILL 119
AN ACT relative to the regulation of consumer guaranty contracts and debt cancellation or debt suspension agreements by the insurance department.
SPONSORS: Sen. Carson, Dist 14; Rep. Hunt, Ches 11
This law establishes procedures for regulation of guaranteed asset protection waivers offered in New Hampshire.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
03/12/2015 0706s
15-0883
01/04
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Fifteen
AN ACT relative to the regulation of consumer guaranty contracts and debt cancellation or debt suspension agreements by the insurance department.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Consumer Guarantee Contracts; Definitions. Amend RSA 415-C:1, XIV to read as follows:
XIV.(a) “Service contract” means a contract or agreement for a separately stated consideration, and a specified period of time or usage, covering any consumer good, including, but not limited to, any automobile, household system, or appliance, which promises to provide for the service, repair, replacement, or maintenance of the property necessitated by operational or structural failure due to: a defect in materials or workmanship; normal wear and tear; power surges; or accidental damage from handling. This definition shall apply regardless of the name or label of such contract and regardless of the nature of the service contract obligor. A service contract may provide for the payment of incidental indemnity when service repair or replacement is not feasible or economical or under limited circumstances, including, but not limited to, towing, rental, road hazard, emergency road service, lodging, meals, [and] food loss, or other minor expenses that directly relate to the failure of the consumer good.
(b) “Service contract” includes a contract or agreement for a separately stated consideration, and a specified period of time or usage that provides for any of the following:
(1) Repair or replacement of tires and/or wheels on an automobile damaged as a result of coming into contact with road hazards including, but not limited to, potholes, rocks, wood debris, metal parts, glass, plastic, curbs, or composite scraps;
(2) Removal of dents, dings, or creases on an automobile that can be repaired using the process of paintless dent removal without affecting the existing paint finish and without replacing automobile body panels, sanding, bonding, or painting;
(3) Repair of chips or cracks in or the replacement of an automobile windshield as a result of damage caused by road hazards; or
(4) Replacement of an automobile key or key-fob if the key or key-fob becomes inoperable or is lost or stolen.
2 New Paragraph; Consumer Guaranty Contracts; Exemptions. Amend RSA 415-C:2 by inserting after paragraph IV the following new paragraph:
V. Debt cancellation or debt suspension agreements are exempt from RSA 415-C:4 and RSA 415-C:8.
3 Consumer Guarantee Contracts; Prohibited Acts and Terms. Amend RSA 415-C:7, III(c) to read as follows:
(c) The consumer does not have the right to bring an action to enforce the terms of the contract or otherwise challenge the denial of a claim which the consumer believes is wrongful, subject to the provisions [or] of any alternative dispute resolution procedure specified in the consumer guaranty contract. Consumer guaranty contracts may include provisions requiring the parties to submit to alternative dispute resolution, including a provision requiring binding arbitration that would expressly limit the right of the consumer to bring an action in a court of law, if such provision complies with and does not impede upon the rights of the consumer as provided under RSA 542. All arbitration provisions shall state that they are subject to RSA 542; or
4 Consumer Guarantee Contracts; Reimbursement Insurance Policies. Amend RSA 415-C:8, I(b) to read as follows:
(b) The obligation of the reimbursement insurer to reimburse or, in the event of the obligor’s non-performance, to pay on behalf of the obligor any sums the obligor is legally obligated to pay or shall provide the service which the obligor is legally obligated to undertake according to the obligor’s contractual obligations under the consumer guaranty contracts issued or sold by the obligor. In the event the obligor does not provide for covered services within 60 days after the contract holder has submitted proof of loss to the obligor, the contract holder is entitled to apply directly to the reimbursement insurance company for satisfaction.
5 Retail Installment Contracts. Amend RSA 361-A:7, II(i) to read as follows:
(i) The time balance, which is the sum of (g) and (h), payable in installments by the buyer, the number of installments, the amount of each installment and the due date or period thereof.
The above subparagraphs in paragraph II need not be stated in the sequence or order set forth. Additional paragraphs may be included to explain the calculations involved in determining the stated time balance to be paid by the buyer;
(j) The amount included for a debt cancellation or debt suspension agreement offered in compliance with RSA 415-C.
6 Effective Date. This act shall take effect 60 days after its passage.