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LAWS OF DELAWARE
VOLUME 83
CHAPTER 465
151st GENERAL ASSEMBLY
FORMERLY
HOUSE BILL NO. 429
AN ACT TO AMEND TITLE 18 OF THE DELAWARE CODE RELATING TO MOTOR VEHICLE FINANCIAL PROTECTION PRODUCTS.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:
Section 1. Amend § 917, Title 18 of the Delaware Code as shown by making deletions as shown by strike through and insertions as shown by underline as follows and by redesignating accordingly:
§ 917. Definitions.
For purposes of this section, subchapter, the following terms shall have the following meaning:
(2) “Guaranteed asset protection waiver” means a contractual agreement wherein a creditor agrees, with or without a separate charge, to cancel or waive all or part of the following:
a. Amounts due on a borrower’s motor vehicle finance agreement in the event of a total physical damage loss or unrecovered theft of the motor vehicle, which agreement must be part of, or a separate addendum to, the finance agreement.
b. The excess wear and use charges owed by the borrower to the creditor under a motor vehicle lease contract when the borrower returns a leased vehicle to the creditor at termination of the lease, which agreement must be part of, or a separate addendum to, the lease contract.
(6) (5) “Service contract” means a contract or agreement for a separately stated consideration for any duration to perform the repair, replacement, or maintenance of a consumer product or indemnification for the same, for the operational or structural failure of a consumer product due to a defect in materials, workmanship, accidental damage from handling, or normal wear and tear, with or without additional provisions for incidental payment of indemnity under limited circumstances, including towing, rental, and emergency road service and road hazard protection. Service contracts may provide for the repair, replacement, or maintenance of a consumer product for damage resulting from power surges or interruption. Service contract also includes a contract or agreement sold for a separately stated consideration for a specific duration that provides for any of the following:
f. The reduction of some or all of the amounts due on a consumer’s finance agreement in the event of a total physical damage loss or unrecovered theft of a motor vehicle.
g. f. Other services or products which may be approved by the Commissioner.
Section 2. Amend § 918, Title 18 of the Delaware Code as shown by making deletions as shown by strike through and insertions as shown by underline as follows:
§ 918. Exemption from insurance regulation.
The offering, sale, or issuance of a guaranteed asset protection waiver, service contract, vehicle theft protection product warranty, or maintenance agreement shall not be considered insurance or subject to the insurance laws of this State unless made expressly applicable thereto.
Approved October 14, 2022