HF 1526

as introduced - 79th Legislature (1995 - 1996) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to commerce; regulating motor vehicle service 
  1.3             contracts and mechanical breakdown insurance; 
  1.4             prohibiting certain provisions; providing enforcement; 
  1.5             proposing coding for new law in Minnesota Statutes, 
  1.6             chapter 65B. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  [65B.295] [MOTOR VEHICLE SERVICE CONTRACTS AND 
  1.9   MECHANICAL BREAKDOWN INSURANCE; PROHIBITED PROVISIONS.] 
  1.10     Subdivision 1.  [PRIOR APPROVAL PROHIBITED.] A motor 
  1.11  vehicle service contract provider as defined in section 65B.29, 
  1.12  including a motor vehicle manufacturer, distributor, or importer 
  1.13  that issues motor vehicle service contracts and the issuer of 
  1.14  mechanical breakdown insurance, may not enforce any prior 
  1.15  authorization or prior approval provision in the policy, 
  1.16  contract, or agreement to deny coverage for the repair or 
  1.17  replacement of a covered part. 
  1.18     Subd. 2.  [TERM.] The term of coverage of a policy, 
  1.19  contract, or agreement specified in subdivision 1 begins upon 
  1.20  the expiration of any express warranty required under section 
  1.21  325F.662, subdivision 2, unless a later date is specified. 
  1.22     Subd. 3.  [ENFORCEMENT.] The commissioner of commerce shall 
  1.23  enforce compliance with this section under section 45.027.  The 
  1.24  commissioner shall require motor vehicle service contracts 
  1.25  issued, sold, or offered for sale in this state by a motor 
  1.26  vehicle manufacturer, distributor, or importer to be filed with 
  2.1   the commissioner.