An Act To Amend the Service Contracts Act To Include Motor Vehicle Theft Protection Programs and Warranties
Maine Legislature, Session 130, LD 1141
Committee: Health Coverage, Insurance and Financial Services
Sponsors: MORRIS
Amends: 24-A MRSA §7101, 24-A MRSA §7102, 24-A MRSA §7103

Legislative Document
No. 1141
H.P. 819
House of Representatives, March 22, 2021
An Act To Amend the Service Contracts Act To Include Motor 
Vehicle Theft Protection Programs and Warranties
Received by the Clerk of the House on March 18, 2021.  Referred to the Committee on 
Health Coverage, Insurance and Financial Services pursuant to Joint Rule 308.2 and ordered 
printed pursuant to Joint Rule 401.
ROBERT B. HUNT
Clerk
Presented by Representative MORRIS of Turner.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  24-A MRSA §7101, sub-§3, ¶A, as enacted by PL 2011, c. 345, §4 and 
affected by §7, is amended to read:
A.  Warranties, except for theft protection program warranties;
Sec. 2.  24-A MRSA §7102, sub-§2-A is enacted to read:
2-A.  Incidental costs.  "Incidental costs" means expenses specified in a theft 
protection program warranty that are incurred by the theft protection warranty holder due 
to the failure of the theft protection program to perform as provided in the warranty and 
include but are not limited to insurance policy deductibles, rental vehicle charges, the 
difference between the actual value of the stolen motor vehicle at the time of the theft and 
the cost of a replacement motor vehicle, sales tax, registration fees, transaction fees and 
mechanical inspection fees. 
Sec. 3.  24-A MRSA §7102, sub-§11, ¶D, as enacted by PL 2011, c. 345, §4 and 
affected by §7, is amended to read:
D.  The repair of small motor vehicle windshield chips or cracks but not the 
replacement of the entire windshield; or
Sec. 4.  24-A MRSA §7102, sub-§11, ¶E, as enacted by PL 2011, c. 345, §4 and 
affected by §7, is amended to read:
E.  The repair of damage to the interior components of a motor vehicle caused by wear 
and tear but that expressly excludes the replacement of any part or component of a 
motor vehicle's interior.;
Sec. 5.  24-A MRSA §7102, sub-§11, ¶F is enacted to read:
F.  The replacement of a motor vehicle key or key fob in the event the key or key fob 
becomes inoperable, lost or stolen; or
Sec. 6.  24-A MRSA §7102, sub-§11, ¶G is enacted to read:
G.  In conjunction with a motor vehicle lease, the repair, replacement or maintenance 
of the motor vehicle, or indemnification for repair, replacement or maintenance, due to 
excess wear and use; due to damage for items such as tires, paint cracks or chips, 
interior stains, rips or scratches, exterior dents or scratches, windshield cracks or chips 
or missing interior or exterior parts; or due to excess mileage that results in a lease-end 
charge or any other charge for damage that is determined to be excess wear and use by 
a lessor under a motor vehicle lease, as long as any such payment does not exceed the 
purchase price of the vehicle.
Sec. 7.  24-A MRSA §7102, sub-§14-A is enacted to read:
14-A.  Theft protection program.  "Theft protection program" means a device or 
system that is installed or applied to a motor vehicle, is designed to prevent loss of or 
damage to a motor vehicle from theft and provides a theft protection program warranty.  
"Theft protection program" includes but is not limited to an alarm system, body-part 
marking product, steering lock, window-etching product, pedal and ignition lock and fuel 
and ignition kill switch and electronic, radio and satellite tracking devices.  "Theft 
protection program" does not include a fuel additive, oil additive or other chemical product 
that is applied to the engine, transmission, fuel system or interior or exterior surface of a 
motor vehicle.  
Sec. 8.  24-A MRSA §7102, sub-§14-B is enacted to read:
14-B.  Theft protection program warranty.  "Theft protection program warranty" 
means a written agreement by a theft protection warrantor for a theft protection program 
that provides that if the theft protection program fails to prevent loss of or damage to a 
motor vehicle from theft, the theft protection warrantor shall pay to or on behalf of the theft 
protection warranty holder any specified incidental costs as a result of the failure of the 
theft protection program to perform under the terms of the theft protection program 
warranty.  Incidental costs may be reimbursed in either a fixed amount specified in the theft 
protection program warranty or by use of a formula itemizing specific costs incurred by the 
theft protection warranty holder. 
Notwithstanding any provision of law to the contrary, a theft protection program warranty 
is not insurance in this State and may not be regulated as insurance.  
Sec. 9.  24-A MRSA §7102, sub-§14-C is enacted to read:
14-C.  Theft protection warrantor.  "Theft protection warrantor" means a person who 
is contractually obligated to the theft protection warranty holder under the terms of a theft 
protection program warranty.
Sec. 10.  24-A MRSA §7102, sub-§14-D is enacted to read:
14-D.  Theft protection warranty holder.  "Theft protection warranty holder" means 
a person who purchases a theft protection program, any authorized transferee or assignee 
of that purchaser or any other person legally assuming the purchaser's rights under the theft 
protection program warranty.
Sec. 11.  24-A MRSA §7103, sub-§6, as enacted by PL 2011, c. 345, §4 and 
affected by §7, is amended to read:
6.  Other financial security requirements.  Except for the requirements specified in 
subsections 4 and 5, other financial security requirements may not be required by the 
superintendent for providers, including theft protection warrantors.
Sec. 12.  24-A MRSA §7103, sub-§10, as enacted by PL 2011, c. 345, §4 and 
affected by §7, is amended to read:
10.  Insurance laws exemption.  The marketing, sale, offering for sale, issuance, 
making, proposing to make and administration of service contracts and theft protection 
programs by providers and theft protection warrantors and related service contract or theft 
protection program sellers, administrators and other persons are exempt from all provisions 
of the State's insurance laws, except as specified in this chapter, as long as a service contract 
provider or administrator has registered with the superintendent as required by subsection 
4.  Reimbursement insurance policies are subject to all relevant provisions of this Title to 
the full extent consistent with this chapter.
SUMMARY
This bill amends the laws governing service contracts to include motor vehicle theft 
protection programs and theft protection program warranties.