WEST virginia legislature
2020 regular session
House Bill 4149
By Delegates Westfall, Queen, Barrett, Waxman, Hott, Williams, D. Jeffries, Kessinger, Porterfield and Espinosa
[Introduced January 13, 2020; Referred to the Committee on Banking and Insurance.]
A BILL to amend and reenact §33-4-2 of the Code of West Virginia, 1931, as amended, relating to insurance; adding definitions.
Be it enacted by the Legislature of West Virginia:
ARTICLE 4. GENERAL PROVISIONS.
§33-4-2. Application of chapter to particular types of insurers.
(a) No provision of this chapter shall apply to:
(1) Hospital service corporations and medical service corporations except as stated in §33-24-1 et seq. of this code;
(2) Fraternal benefit societies except as stated in §33-23-1 et seq. of this code;
(3) Farmers’ mutual fire insurance companies except as stated in §33-22-1 et seq. of this code.;
(5) Service contracts;
(6) Maintenance agreements.
(b) For the purposes of this article:
(1) “Holder” means a resident of this state who either purchases a service agreement or is legally in possession of a service contract and is entitled to enforce the rights of the original purchaser of the service contract.
(2) “Incidental costs” means expenses specified in a vehicle theft protection program warranty that are incurred by the warranty holder due to the failure of a vehicle theft protection program to perform as provided in the contract. Incidental costs may be reimbursed in either a fixed amount specified in the vehicle theft protection program warranty or by use of a formula itemizing specific incidental costs incurred by the warranty holder.
(2) (3) “Maintenance agreement” means a contract
for a limited period that provides only for scheduled maintenance. (3) (4) “Provider” means a person who is obligated
to a holder pursuant to the terms of a service contract to repair, replace or
perform maintenance on or to indemnify the holder for the costs of repairing,
replacing or performing maintenance on goods.
(5) “Road hazard” means a hazard that is encountered while driving a motor vehicle, which may include potholes, rocks, wood debris, metal parts, glass, plastic, curbs, or composite scraps.
(4) (6) “Service contract” means an agreement entered
into for a separately stated consideration and for a specified term under which
a provider agrees to repair, replace or maintain a product or provide
indemnification for the repair, replacement or maintenance of a product for
operational or structural failure caused by a defect in materials or
workmanship or by normal wear. A service contract may additionally provide for
incidental payment or indemnity under limited circumstances including towing,
rental and emergency road service or for the repair or replacement of a product
for damage resulting from power surges or accidental damage incurred in
handling the product. “Service contract” also means a contract or agreement
that provides one (1) or more of the following:
(i) The repair or replacement of tires or wheels on a motor vehicle damaged as a result of coming into contact with road hazards;
(ii) 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 replacing vehicle body panels, sanding, bonding, or painting;
(iii) The repair of chips or cracks in, or the replacement of, motor vehicle windshields as a result of damage caused by road hazards;
(iv) The replacement of a motor vehicle key or key-fob in the event that the key or key-fob becomes inoperable or is lost or stolen; or
(v) In conjunction with a motor vehicle leased for use, the repair, replacement or maintenance of property, or indemnification for repair, replacement or maintenance, due to excess wear and use, damage for items such as tires, paint cracks or chips, interior stains, rips or scratches, exterior dents or scratches, windshield cracks or chips, missing interior or exterior parts or excess mileage that result in a lease-end charge, or any other charge for damage that is deemed as excess wear and use by a lessor under a motor vehicle lease, provided any such payment shall not exceed the purchase price of the vehicle;
(7) “Vehicle theft protection product” means a device or system that: (i) Is installed on or applied to a motor vehicle; (ii) is designed to prevent loss or damage to a motor vehicle from theft; and (iii) includes a vehicle theft protection program warranty. Vehicle theft protection product does not include fuel additives, oil additives, or other chemical products applied to the engine, transmission, or fuel system, or interior or exterior surfaces of a motor vehicle.
(8) “Vehicle theft protection product warranty” means a warranty that provides if the vehicle theft protection product fails to prevent loss or damage to a motor vehicle from theft, that the warrantor will pay to or on behalf of the warranty holder specified incidental costs as a result of the failure of the vehicle theft protection product to perform pursuant to the terms of the vehicle theft protection product warranty.
(5) (9) “Warranty” means in relation to a product
or service an undertaking that guarantees indemnity for defective parts,
mechanical or electrical breakdown, labor costs or other remedial measures,
such as repair or replacement of the product or repetition of services and that
is made solely by the manufacturer, importer or seller of the product or
services made without payment of additional consideration, not negotiated or
separated from the sale of the product or service and incidental to the sale of
the product or service. The term shall include a vehicle theft protection
NOTE: The purpose of this bill is to add definitions relating to insurance.
Strike-throughs indicate language that would be stricken from a heading or the present law and underscoring indicates new language that would be added.