HLS 10RS-1424 ORIGINAL
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are additions.
Regular Session, 2010
HOUSE BILL NO. 581
BY REPRESENTATIVE KLECKLEY
INSURANCE/POLICIES: Provides for vehicle component coverage contracts
AN ACT1
To amend and reenact R.S. 22:361(7) and (8) and to enact R.S. 22:361(9) and (10) and2
362(C), relative to vehicle mechanical breakdown insurers; to provide a definition3
of road hazard and vehicle component coverage contracts; to provide for the sale of4
vehicle component coverage with the purchase of a motor vehicle; and to provide for5
related matters.6
Be it enacted by the Legislature of Louisiana:7
Section 1. R.S. 22:361(7) and (8) are hereby amended and reenacted and R.S.8
22:361(9) and (10) and 362(C) are hereby enacted to read as follows: 9
§361. Definitions10
As used in this Subpart:11
* * *12
(7) "Road hazard" shall include but not be limited to potholes, rocks, curbs,13
wood debris, other debris, nails, screws, bolts, metal parts, or glass; however, "road14
hazard" shall not include any damage caused by collision with another vehicle,15
vandalism or other causes usually covered under the comprehensive or collision16
coverages provided by an automobile physical damage policy.17
(8) "Vehicle component coverage contracts" means a contract which18
provides the owner or purchaser of a motor vehicle with one or more of the19
following coverages:20 HLS 10RS-1424 ORIGINAL
HB NO. 581
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are additions.
(a) "Paintless dent repair contract" means a contract which provides for the1
repair of or promises to pay for all or part of the cost to repair or remove dents,2
dings, or creases from the exterior of the motor vehicle utilizing the paintless dent3
repair process, provided that a paintless dent repair contract shall not cover sanding,4
bonding, painting, or the replacement of body panels. A paintless dent repair5
contract shall not provide coverage usually provided by the comprehensive or6
collision portions of an automobile physical damage policy.7
(b) "Tire and wheel contract" means a contract which promises to pay for all8
or part of the cost to repair or replace tires and wheels which are damaged due to9
contact with a road hazard.10
(c) "Windshield contract" means a contract which promises to pay for all or11
part of the cost of the repair or of the replacement of windshield or window glass on12
a motor vehicle when the damage to the glass is caused by contact with a road13
hazard.14
(7) (9) "Vehicle mechanical breakdown insurance policy" means any15
contract, agreement, or instrument whereby a person other than the owner, seller, or16
lessor of a vehicle assumes the risk of and or or the expense or portion thereof for the17
mechanical breakdown or mechanical failure of a motor vehicle and other customer18
assistance and convenience services, such as vehicle rental assistance, towing19
assistance, vehicle component coverage contracts, trip interruption, and roadside20
assistance, and shall include those agreements commonly known as vehicle service21
agreements or extended warranty agreements.22
(8) (10) "Vehicle mechanical breakdown insurer" means any person or23
organization, whether domestic, foreign, or alien, issuing or attempting to issue24
vehicle mechanical breakdown policies as defined herein.25
§362. License required of vehicle mechanical breakdown insurer 26
* * *27
C. A licensed vehicle mechanical breakdown insurer may issue vehicle28
mechanical breakdown policies, commonly known as vehicle component coverage29 HLS 10RS-1424 ORIGINAL
HB NO. 581
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contracts as defined in R.S. 22:361, provided those vehicle component coverage1
contracts are sold in conjunction with the purchase of a motor vehicle or the purchase2
of one or more tires and or more wheels for a motor vehicle.3
Section 2. This Act shall become effective upon signature by the governor or, if not4
signed by the governor, upon expiration of the time for bills to become law without signature5
by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If6
vetoed by the governor and subsequently approved by the legislature, this Act shall become7
effective on the day following such approval.8
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
Kleckley HB No. 581
Abstract: Provides relative to the sale of vehicle component coverage contracts.
Proposed law defines "road hazard" as including but not limited to potholes, rocks, curbs,
wood debris, other debris, nails, screws, bolts, metal parts, or glass. Specifies that the
definition of “road hazard” does not include any damage caused by collision with another
vehicle, vandalism, or other causes usually covered under the comprehensive or collision
coverages provided by an automobile physical damage policy. Also, defines “vehicle
component coverage contracts” as a contract which provides the owner or purchaser of a
motor vehicle with one or more of the following coverages:
(1)"Paintless dent repair contract" means a contract which provides for the repair of or
promises to pay for all or part of the cost to repair or remove dents, dings or creases
from the exterior of the motor vehicle utilizing the paintless dent repair process,
provided that a paintless dent repair contract shall not cover sanding, bonding,
painting, or the replacement of body panels. Further provides that a paintless dent
repair contract shall not provide coverage usually provided by the comprehensive or
collision portions of an automobile physical damage policy.
(2)"Tire and wheel contract" means a contract which promises to pay for all or part of
the cost to repair or replace tires and wheels which are damaged due to contact with
a road hazard.
(3)"Windshield contract" means a contract which promises to pay for all or part of the
cost of the repair or of the replacement of windshield or window glass on a motor
vehicle when the damage to the glass is caused by contact with a road hazard.
Present law defines "vehicle mechanical breakdown insurance policy" as any contract,
agreement, or instrument whereby a person other than the owner, seller, or lessor of a vehicle
assumes the risk of and/or the expense or portion thereof for the mechanical breakdown or
mechanical failure of a motor vehicle and other customer assistance and convenience
services, such as vehicle rental assistance, towing assistance, trip interruption, and roadside
assistance, and includes those agreements commonly known as vehicle service agreements
or extended warranty agreements. HLS 10RS-1424 ORIGINAL
HB NO. 581
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are additions.
Proposed law adds vehicle component coverage contracts to the definition of "vehicle
mechanical breakdown insurance policy". Makes technical changes.
Proposed law authorizes a licensed vehicle mechanical breakdown insurer to sell vehicle
mechanical breakdown policies, or vehicle component coverage contracts if they are sold
in conjunction with the purchase of a motor vehicle or the purchase of one or more tires or
one or more wheels for a motor vehicle.
Effective upon signature of governor or lapse of the time for gubernatorial action.
(Amends R.S. 22:361(7) and (8); Adds R.S. 22:361(9) and (10) and 362(C))