Page:2021 North Dakota Session Laws.pdf/320

CONTRACTS AND OBLIGATIONS

CHAPTER 83

SENATE BILL NO. 2150

(Senator Klein)

(Representative Lefor)

AN ACT to amend and reenact section 9-01-21 of the North Dakota Century Code, relating to vehicle theft protection product warranties.

BE IT ENACTED BY THE LEGISLATIVE ASSEMBLY OF NORTH DAKOTA:

SECTION 1. AMENDMENT. Section 9-01-21 of the North Dakota Century Code is amended and reenacted as follows:

9-01-21. Property service contracts - Exemption.

1. The marketing, selling, offering for sale, issuing, making, providing, or proposing to make and the administering of a property service contract or vehicle theft protection product warranty is not subject to the provisions of title 26.1.

2. A property service contract is a contract or agreement for a separately stated consideration, for a specific duration, to provide for the repair, replacement, or maintenance or for the indemnification for the repair, replacement, or maintenance of new or used property if an operational or structural failure is due to a defect in materials, manufacturing, or normal wear and tear. Property covered under a property service contract may include motor vehicles; residential appliances; residential systems, including plumbing, electrical, heating, cooling, and ventilation; and other residential property. The contract may provide coverage for:

a. Damage to property resulting from power surges;

b. Accidental damage to property resulting from handling; and

c. Payment of indemnity for incidental damages, such as food spoilage, towing, and rental and emergency road service;

d. The repair or replacement of tires and wheels on a motor vehicle damaged as a result of coming into contact with a road hazard;

e. The removal of dents, dings, or creases on a motor vehicle which can be repaired using the process of paintless dent removal without affecting the existing paint finish and without sanding, bonding, painting, or replacing a vehicle body panel;