UPDATE: This bill has been enacted and is effective July 1, 2016.
Legislation was recently introduced in Florida proposing to amend and clarify certain ancillary benefits permitted under the State’s Motor Vehicle Service Agreement (MVSA) law. Florida House Bill 875, (see also companion Senate Bill 1120), was filed last month and has been referred to the House Insurance and Banking Subcommittee as well as the House Regulatory Affairs Committee for consideration.
Current law defines an MVSA as one that may provide coverage or protection “in conjunction with an additive product” applied to the vehicle. Current law defines “additive product” as “any fuel supplement, oil supplement, or any other supplement product added to a motor vehicle for the purpose of increasing or enhancing the performance or improving the longevity of such motor vehicle. [emphasis added].
The legislation proposes to amend this current definition of “additive product” by stating that it does not include a product applied to the exterior or interior surface of a vehicle to protect its appearance. This would seem to disallow, as an MVSA, contracts that provide benefits relating to the application of the so-called “wet” interior and exterior appearance products being sold in the market today.
Current law also states that an MVSA is a contract or agreement that provides for the payment for paintless dent-removal services provided by a company whose primary business is providing such services. “Paintless dent-removal” is currently defined as a “process of removing dents, dings, and creases, including hail damage, from a vehicle without affecting the existing paint finish, but does not include services that involve the replacement of vehicle body panels or sanding, bonding, or painting.”
The legislation strikes this provision in its entirety, but seems to replace it with language authorizing contracts the provide for the removal of “dents, dings, or creases” that may be repaired using the process of paintless dent removal without affecting the existing paint finish, using sanding, bonding or painting. However, as currently drafted, the term “paintless dent removal” would no longer be specifically defined and PDR services need not be provided by a company whose primary business is PDR. Further, as drafted, the seemingly clear authority to cover dents and dings resulting from hail damage, would also be removed.
Lastly, new language authorizing repair or replacement of tires or wheels due to road hazard as well as replacement of keys or key fobs when they are inoperable, lost or stolen, is being added.
This legislation proposes an effective date of July 1, 2016.
