Relates to service contracts for accidental damages

This bill updates New York's insurance law to clarify that service contracts can cover accidental damage from handling (like dropping devices) and power surges, alongside existing coverage for defects or wear. It explicitly includes these protections in the definition of "service contract," limiting indemnity payments per incident to the property's original purchase price. The bill also specifies that such contracts may cover tire repairs for road hazards, windshield chip repairs, paintless dent removal, key replacements, and residential appliance maintenance. These changes directly affect consumers purchasing service contracts for electronics, vehicles, or home appliances, ensuring clearer terms for accidental damage coverage.