Reference is to the bill as introduced.
Amend the bill, as and if amended, by striking all after the enacting words and inserting:
\ SECTION 1. Section 38-78-20(12), (13), and (14) of the 1976 Code is amended to read:
"(12) 'Service contract' means a
contract or agreement for a separately stated consideration for
a specific duration to perform the repair, replacement, or
maintenance of property or indemnification for repair,
replacement, or maintenance, for the operational or structural
failure due to a defect in materials, workmanship, or normal
wear and tear, with or without additional provisions for
incidental payment of indemnity under limited circumstances
including, but not limited to, towing, rental, and emergency
road service. Service contracts may provide for the repair,
replacement, or maintenance of property for damage resulting
from power surges and accidental damage from handling.
'Service contract' includes a contract or agreement for a
separately stated consideration for a specific duration to
perform one or more of the following services:
(a)
the repair or replacement of tires and wheels on
a motor vehicle damaged as a result of coming into contact with
road hazards;
(b)
the removal of dents, dings, or creases on a
motor vehicle that can be repaired using the process of
paintless dent removal without affecting the existing paint
finish and without sanding, bonding, painting, or replacing a
vehicle body panel;
(c)
the replacement of a motor vehicle key or key
fob in the event that the key or key fob becomes inoperable,
lost, or stolen; and
(d)
other services consistent with the provisions of
this chapter approved by the director.
(13) 'Road
hazard' means a hazard that is encountered while driving a motor
vehicle including, but not limited to, potholes, rocks, wood
debris, metal parts, glass, plastic, curbs, or composite
scraps.
(14)
'Service contract holder' or 'contract holder' means a
person who is the purchaser or holder of a service contract.
(15) 'Theft
protection program' means a device or system installed on or
applied to a motor vehicle designed to prevent loss or damage to
a motor vehicle from theft that includes a theft protection
program warranty. The term 'theft protection program' includes,
but is not limited to, alarm systems, body-part marking
products, steering locks, window etch products, pedal and
ignition locks, fuel and ignition kill switches, and electronic,
radio, and satellite tracking devices.
(16)
'Theft protection program warranty' means a written
agreement by a warrantor that provides the warrantor will pay to
or on behalf of the warranty holder specified incidental costs
not to exceed five thousand dollars as a result of the failure
of the theft protection program to prevent loss or damage to a
motor vehicle pursuant to the terms of the warranty. Specified
incidental costs include expenses specified in the warranty that
are incurred by the warranty holder due to the failure of the
program to perform as provided in the warranty. Incidental costs
include, without limitation, insurance policy deductibles,
rental vehicle charges, the difference between the actual value
of the stolen vehicle at the time of theft and the cost of a
replacement vehicle, sales taxes, registration fees, transaction
fees, and mechanical inspection fees. Incidental costs may be
reimbursed in a fixed amount specified in the warranty or by use
of a formula itemizing specific costs incurred by the warranty
holder. A theft protection program warranty must contain a
conspicuous disclosure substantially similar to the following in
ten-point bold font: 'This warranty is not insurance and
payments or reimbursement under this warranty may not exceed
five thousand dollars.'
(14)(17)
'Warranty' means a warranty made solely by the
manufacturer, importer, or seller of property or services
without charge, that is not negotiated or separated from the
sale of the product, that is incidental to the sale of the
product, and that guarantees indemnity for defective parts,
mechanical or electrical breakdown, labor, or other remedial
measures, such as repair or replacement of the property or
repetition of services. This term includes theft protection
program warranties if the warrantor has obtained a reimbursement
insurance policy to insure its warranty obligations in this
State."
SECTION 2. Section 38-78-30(E) of the 1976 Code is amended to read:
"(E) Except for the requirements specified in subsection (D), no other financial security requirements shall be required by the director for service contract providers.
Service contract providers that establish their financial security to pay claims by insuring their obligations under a reimbursement insurance policy as provided in subsection (D)(1) are not required to file financial statements in connection with an application for registration or the renewal of a registration."
SECTION 3. Section 38-78-50 of the 1976 Code is amended by adding an appropriately lettered subsection at the end to read:
"( ) Service contracts must include a disclosure substantially similar to the following: 'In the event of a dispute with the provider of this contract, you may contact the South Carolina Department of Insurance, Capitol Center, 1201 Main Street, Ste. 1000, Columbia, South Carolina 29201 or by phone at (800) 768-3467'."
SECTION 4. This act takes effect on January 1, 2020. /
Renumber sections to conform.
Amend title to conform.