Oklahoma 2022 Regular Session

Oklahoma Senate Bill SB490 Compare Versions

Version 1 (Old)

Version 2 (New)

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4		-	An Act
5		-	ENROLLED SENATE
	29	+	HOUSE OF REPRESENTATIVES - FLOOR VERSION
	30	+
	31	+	STATE OF OKLAHOMA
	32	+
	33	+	1st Session of the 58th Legislature (2021)
	34	+
	35	+	ENGROSSED SENATE
6	36		BILL NO. 490 By: Quinn of the Senate
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8	38		and
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10	40		Hill of the House
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17	45		An Act relating to the Oklahoma Home Service Contract
18	46		Act; amending 36 O.S. 2011, Section s 6751, as amended
19	47		by Section 37, Chapter 150, O.S.L. 2012 and 6752 (36
20	48		O.S. Supp. 2020, Section 6751) , which relate to
21	49		purpose of act and definitions; modifying purpose and
22	50		applicability of act to home warranties; modifying
23	51		definition; specifying that home service contracts
24	52		and home warranties are not insurance and not
25	53		regulated by Insurance Code; providing for
26	54		codification; and providing an effective date .
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31		-	SUBJECT: Oklahoma Home Service C ontract Act
32		-
33	59		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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35	60		SECTION 1. AMENDATORY 36 O.S. 2011, Section 6751, as
36	61		amended by Section 37, Chapter 150, O.S.L. 2012 (36 O.S. Supp. 2020,
37	62		Section 6751), is amended to read as follows:
38		-
39	63		Section 6751. A. The purpose of the Oklahoma Home Service
40	64		Contract Act is to create an independent legal framework within
41	65		which home service contracts and home warranties are defined, may be
42	66		sold and are regulated in this state. The Oklahoma Home Service
43	67		Contract Act declares that home service contracts and home
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44	95		warranties, as defined in Section 6752 of this title, are not
45	96		insurance and not otherwise subject to the Insurance Code. The
46	97		Oklahoma Home Service Contract Act requires simple registration,
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48		-	ENR. S. B. NO. 490 Page 2
49	98		financial assurance options and enforcement by the Insurance
50	99		Commissioner. Proper registration under the Oklahoma Home Service
51	100		Contract Act exempts applicability under the Service Warranty Act,
52	101		which may regulate extended warranty, retail, automobile and
53	102		agreements not defined in the Oklahoma Home Service Contract Act.
54	103		Nothing in the Service Warranty Act is changed or amended by the
55	104		Oklahoma Home Service Contract Act.
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57	105		B. The following items are exempt from the provisions of the
58	106		Oklahoma Home Service Contract Act:
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60	107		1. Warranties as defined in Section 6752 of this title;
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62	108		2. Maintenance agreements as defined in Section 6752 of this
63	109		title; and
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65	110		3. Service contracts sold or offered for sale to persons other
66	111		than consumers, consumer product (extended warranty) service
67	112		contracts on new retail goods if made at the time of sale and motor
68	113		vehicle service contracts, all of which may be separately regulated
69	114		elsewhere in the Oklahoma Statutes.
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71	115		C. The types of agreements covered by the Oklahoma Home Service
72	116		Contract Act are not insurance and do not have to comply with any
73	117		other provision of the Insu rance Code outside of the Oklahoma Home
74	118		Service Contract Act.
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76	146		SECTION 2. AMENDATORY 36 O.S. 2011, Section 6752, is
77	147		amended to read as follows:
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79	148		Section 6752. As used in the Oklahoma Home Service Contract
80	149		Act:
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82	150		1. “Administrator” means the person who is responsible for the
83	151		administration of home service contracts or the home service
84	152		contracts plan, who may promote the contract under their own private
85	153		label or brand as long as the provider is clearly identified on the
86	154		contract, or who is responsible for any submission required by the
87	155		Oklahoma Home Service Contract Act;
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89	156		2. “Commissioner” means the Insurance Commissioner;
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93	157		3. “Consumer” means a natural person who buys other than for
94	158		purposes of resale any tangible personal property tha t is
95	159		distributed in commerce and that is normally used for personal,
96	160		family or household purposes and not for business or research
97	161		purposes;
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99	162		4. “Maintenance agreement ” means a contract of limited duration
100	163		that provides for scheduled maintenance only and d oes not include
101	164		repair or replacement;
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103	165		5. “Person” means an individual, partnership, corporation,
104	166		incorporated or unincorporated association, joint stock company,
105	167		reciprocal, syndicate or any similar entity or combination of
106	168		entities acting in concert;
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108	196		6. “Provider” means the person who is the contractually named
109	197		obligor to the home service contract holder under the terms of the
110	198		service contract;
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112	199		7. “Provider fee” means the consideration paid for a home
113	200		service contract;
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115	201		8. “Reimbursement insurance poli cy” means a policy of insurance
116	202		issued to a provider to either provide reimbursement to the provider
117	203		under the terms of the insured home service contracts issued or sold
118	204		by the provider or, in the event of the provider ’s nonperformance,
119	205		to pay on behalf of the provider all covered contractual obligations
120	206		incurred by the provider under the terms of the insured home service
121	207		contracts issued or sold by the provider;
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123	208		9. “Home service contract ” or “home warranty” means a contract
124	209		or agreement for a separately s tated consideration for a specific
125	210		duration to perform the service, repair, replacement or maintenance
126	211		of property or indemnification for service, repair, replacement or
127	212		maintenance, for the operational or structural failure of any
128	213		residential property due to a defect in materials, workmanship,
129	214		inherent defect or normal wear and tear, with or without additional
130	215		provisions for incidental payment or indemnity under limited
131	216		circumstances. Home service contracts may provide for the service,
132	217		repair, replacement, or maintenance of property for damage resulting
133	218		from power surges or interruption and accidental damage from
134	219		handling and may provide for leak or repair coverage to house
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136		-	ENR. S. B. NO. 490 Page 4
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137	247		roofing systems. Home service contracts and home warranties are not
138	248		insurance in this state or otherwise regulated under the Insurance
139	249		Code;
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141	250		10. “Service contract holder ” or “contract holder” means a
142	251		person who is the purchaser or holder of a home service contract;
143	252		and
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145	253		11. “Warranty” means a warranty made solely by the
146	254		manufacturer, importer or seller of property or services , including
147	255		builders on new home construction, without consideration, that is
148	256		not negotiated or separated from the sale of the product and is
149	257		incidental to the sale of the product, that guarantees indemnity for
150	258		defective parts, mechanical or electrical breakdown, labor or other
151	259		remedial measures, such as repair or replacement of the property or
152	260		repetition of services.
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154	261		SECTION 3. NEW LAW A new section of law to be codified
155	262		in the Oklahoma Statu tes as Section 632.1 of Title 36, unless there
156	263		is created a duplication in numbering, reads as follows:
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158	264		Home service contracts and home warranties, as defined in
159	265		Section 6752 of Title 36 of the Oklahoma Statutes, are not insurance
160	266		in this state or otherwis e regulated under the Insurance Code.
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162	267		SECTION 4. This act shall become effective November 1, 2021.
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165		-	ENR. S. B. NO. 490 Page 5
166		-	Passed the Senate the 4th day of March, 2021.
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170		-	Presiding Officer of the Senate
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173		-	Passed the House of Representatives the 14th day of April, 2021.
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177		-	Presiding Officer of the House
178		-	of Representatives
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180		-	OFFICE OF THE GOVERNOR
181		-	Received by the Office of the Governor this _______ _____________
182		-	day of _________________ __, 20_______, at _______ o'clock _______ M.
183		-	By: _______________________________ __
184		-	Approved by the Governor of the State of Oklahoma this _________
185		-	day of _________________ __, 20_______, at _______ o'clock _______ M.
186		-
187		-	_________________________________
188		-	Governor of the State of Oklahoma
189		-
190		-
191		-	OFFICE OF THE SECRETARY OF STATE
192		-	Received by the Office of the Secretary of State this __________
193		-	day of __________________, 20 _______, at _______ o'clock _______ M.
194		-	By: _______________________________ __
	269	+	COMMITTEE REPORT BY: COMMITTEE ON INSURANCE, dated 04/01/2021 - DO
	270	+	PASS.