Bill > A01062

This bill amends the existing insurance law definition of a "service contract" by explicitly including power surges and accidental damages from handling as standard coverage that can be included in service contracts. The bill modifies the previous language that had listed power surges and accidental damage handling as optional additional provisions by integrating these types of damages directly into the core definition of what a service contract can cover. Specifically, the amendment allows service contracts to more comprehensively provide repair, replacement, or maintenance services for items damaged by power surges or accidentally damaged during handling, while maintaining the existing limitation that any indemnity payment per incident cannot exceed the original purchase price of the serviced property. The bill expands the existing provisions to give consumers and service contract providers more clarity and flexibility in defining the scope of coverage for various types of potential damage to property. The amendment takes effect immediately upon passage.

Business and Industry

https://www.nysenate.gov/legislation/bills/2025/A1062