An Act To Clarify That Commercial Service Contracts Are Excluded from the Service Contracts Act
Maine Legislature, Session 130, LD 1347
Committee: Health Coverage, Insurance and Financial Services
Sponsors: JACKSON, DAVIS, MARTIN
Amends: 24-A MRSA §7101, 24-A MRSA §7102

Legislative Document
No. 1347
S.P. 429
In Senate, March 30, 2021
An Act To Clarify That Commercial Service Contracts Are 
Excluded from the Service Contracts Act
Reference to the Committee on Health Coverage, Insurance and Financial Services 
suggested and ordered printed.
DAREK M. GRANT
Secretary of the Senate
Presented by President JACKSON of Aroostook.
Cosponsored by Senator: DAVIS of Piscataquis, Representative: MARTIN of Sinclair.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  24-A MRSA §7101, sub-§3, ¶G, as enacted by PL 2011, c. 345, §4 and 
affected by §7, is amended to read:
G.  Home service contracts under section 3, subsection 3; and
Sec. 2.  24-A MRSA §7101, sub-§3, ¶H, as enacted by PL 2011, c. 345, §4 and 
affected by §7, is amended to read:
H.  Warranties, service contracts and maintenance agreements that are conditioned 
upon or otherwise associated with the sale or supply of heating fuel.; and
Sec. 3.  24-A MRSA §7101, sub-§3, ¶I is enacted to read:
I.  Commercial service contracts.
Sec. 4.  24-A MRSA §7102, sub-§1-A is enacted to read:
1-A.  Commercial service contract.  "Commercial service contract" means a service 
contract to which none of the parties is a consumer and does not involve property that is 
normally used for personal, family or household purposes.
Sec. 5.  24-A MRSA §7102, sub-§11, ¶A, as enacted by PL 2011, c. 345, §4 and 
affected by §7, is amended to read:
A.  The repair or replacement or indemnification for the repair or replacement of a 
motor vehicle or other machinery or equipment for the operational or structural failure 
of one or more parts or systems of the motor vehicle or other machinery or equipment 
brought about by the failure of an additive product to perform as represented;
Sec. 6.  24-A MRSA §7102, sub-§11, as enacted by PL 2011, c. 345, §4 and 
affected by §7, is amended by amending the first blocked paragraph to read:
Notwithstanding any other provision of law, service contracts are not insurance in this State 
and may not be regulated as insurance except for a contract or agreement providing 
indemnification for a loss caused by misplacement, theft, collision, fire or other peril 
typically covered in the comprehensive section of an automobile insurance policy or by a 
homeowner's policy or a marine or inland marine policy issued to a consumer or insuring 
consumer goods.  Commercial service contracts are not insurance in this State and may not 
be regulated as insurance and are not otherwise subject to the provisions of this chapter.
SUMMARY
This bill amends the Service Contracts Act to define "commercial service contract" as 
a service contract in which none of the parties to the contract is a consumer and which does 
not involve property normally used for personal, family or household purposes.  The bill 
clarifies that a commercial service contract is not insurance in this State, may not be 
regulated as insurance and is exempt from the requirements of the Act.
This bill also amends the definition of "service contract" to include the repair or 
replacement or indemnification for the repair or replacement of machinery or equipment 
for the operational or structural failure of one or more parts or systems brought about by 
the failure of an additive product to perform as represented.