SB 1065, as introduced, Monning. Insurance.
Under existing law, automobile insurance includes, among other things, a contract of warranty or guaranty that promises service, maintenance, parts replacement, repair, money, or other indemnity in the event of loss or damage to a motor vehicle. Automobile insurance also includes an agreement that promises repair or replacement of a motor vehicle, or part of a motor vehicle, after a mechanical or electrical breakdown at either no cost or a reduced cost to the agreementholder.
This bill would make technical, nonsubstantive changes to those provisions.
Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 116 of the Insurance Code is amended
2to read:
(a) Automobile insurance includes insurance of
4automobile owners, users, dealers, or others having insurable
5interests therein, against hazards incident to ownership,
6maintenance, operation, and use of automobiles, other than loss
7resulting from accident or physical injury, fatal or nonfatal, to, or
8death of, any natural person.
P2 1(b) Automobile insurance also includesbegin delete anyend deletebegin insert aend insert contract of
2warrantybegin delete,end delete or guaranty that promises service, maintenance, parts
3
replacement, repair, money, or any other indemnity in event of
4loss of or damage to a motor vehicle or a trailer, as defined by
5Section 630 of the Vehicle Code, or any part thereof from any
6cause, including loss of or damage to or loss of use of the motor
7vehicle or trailer by reason of depreciation, deterioration, wear
8and tear, use, obsolescence, or breakage if made by a warrantor
9or guarantor who is doing an insurance business.
10(c) Automobile insurance also includesbegin delete anyend deletebegin insert anend insert agreement that
11promises repair or replacement of a motor vehicle, or part thereof,
12after a mechanical or electrical breakdown, at either no cost or a
13reduced cost for the agreement holder. However, automobile
14insurance does not include a vehicle service contract subject to
15Part 8
(commencing with Section 12800) of Division 2, or an
16agreement deemed not to be insurance under that part.
17(d) The doing or proposing to dobegin delete anyend delete business in substance
18equivalent to the business described in this section in a manner
19designed to evade the provisions of this section is the doing of an
20insurance business.
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