Bill would clarify regulation of ancillary auto products

Senators gave first-round approval March 22 to a bill meant to clarify the regulatory framework for motor vehicle ancillary product contracts.

LB1054, introduced by Omaha Sen. Beau McCoy, would specify that service contracts for ancillary motor vehicle products are not insurance and not otherwise subject to the state’s insurance code.

The bill defines ancillary products as a protective chemical, substance, device, system or service installed on or applied to a motor vehicle, which is designed to prevent loss or damage from a specific cause.

Such products would include, but not be limited to:
• additives;
• alarm systems;
• steering locks;
• fuel and ignition kill switches;
• part marketing products; and
• electronic, radio and satellite tracking devices.

A Banking, Commerce and Insurance Committee amendment, adopted 32-0, expanded the bill’s ancillary auto product definition to include contracts or agreements for repair or replacement of:
• windshields damaged by road hazards;
• inoperable or lost keys or key fobs;
• tires or wheels damaged by road hazards; and
• dents, dings or creases using paintless dent removal.

The bill advanced to select file 31-0.