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LRB-4904/1
TJD&KP:ekg&cdc
2021 - 2022 LEGISLATURE
October 18, 2021 - Introduced by Representatives Petryk, Mursau, Rozar and
Wichgers, cosponsored by Senator Roth. Referred to Committee on
Insurance.
AB623,1,3 1An Act to amend 100.203 (1) (e); and to create 100.203 (2) (e), 616.50 (11) (g)
2and 616.50 (11) (h) of the statutes; relating to: motor vehicle service contracts
3and vehicle protection product warranties.
Analysis by the Legislative Reference Bureau
Under current law, service contracts are generally exempt from regulation
under the insurance statutes but are subject to limited regulation by the Office of the
Commissioner of Insurance. Service contracts with motor vehicle manufacturers are
subject to some of those limited regulations. Service contracts, as defined in current
law, are contracts or agreements for separate consideration for a specified time
period to perform repair, replacement, or maintenance of property under certain
circumstances. Current law provides a list of contracts or agreements that constitute
service contracts. This bill adds to the list the repair or replacement of a motor
vehicle key or key fob that has become inoperable or is lost or stolen. The bill also
adds to the list the repair, replacement, or maintenance of a motor vehicle, directly
or by indemnification, for excess wear that results in excess wear and use charges
at the end of a lease under a motor vehicle lease agreement, if the value of any
benefits under the contract or agreement does not exceed the purchase price of the
motor vehicle.
Also, current law requires a person obligated by a warranty (warrantor) for a
vehicle protection product that prevents loss or damage to vehicles to register and

file certain information with OCI. The bill specifies that a warrantor is not required
to obtain approval from OCI for the terms of a vehicle protection product warranty.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB623,1 1Section 1. 100.203 (1) (e) of the statutes is amended to read:
AB623,2,82 100.203 (1) (e) “Vehicle protection product" means a device, system, or service
3installed on or applied to a vehicle that is designed to prevent loss or damage to the
4vehicle. “Vehicle protection product" includes alarm systems, body-part marking
5products, steering locks, window-etch products, pedal and ignition locks, fuel and
6ignition kill switches, and electronic, radio, and satellite tracking devices. “Vehicle
7protection product” does not include a chemical or substance applied to an exterior
8or interior surface of a vehicle to maintain and protect the vehicle's appearance.
AB623,2 9Section 2. 100.203 (2) (e) of the statutes is created to read:
AB623,2,1110 100.203 (2) (e) A warrantor is not required to obtain approval from the office
11for the terms of a warranty.
AB623,3 12Section 3. 616.50 (11) (g) of the statutes is created to read:
AB623,2,1413 616.50 (11) (g) The repair or replacement of a motor vehicle key or key fob in
14the event that the key or key fob becomes inoperable or is lost or stolen.
AB623,4 15Section 4. 616.50 (11) (h) of the statutes is created to read:
AB623,3,216 616.50 (11) (h) The repair, replacement, or maintenance of a motor vehicle, or
17indemnification for the repair, replacement, or maintenance, for excess wear to the
18motor vehicle that results in excess wear and use charges at the end of a lease that
19are assessed by a lessor under a motor vehicle lease agreement, if the value of any

1benefits under the contract or agreement does not exceed the purchase price of the
2motor vehicle.
AB623,3,33 (End)
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