Need help navigating the service contract and extended warranty regulatory process?

If you are a provider, administrator, seller or insurer of service contracts; or want to be, let us be your guide to all the state service contract and extended warranty laws around the country.  We can help guide you through the licensing and registration hoops;  and also help you establish and maintain a compliant service contract or extended warranty program.

The Service Contracts Compass is designed to assist companies like yours by providing valuable information about changes in laws and regulations which may impact your service contract operation and by offering compliance consulting services that can help you keep pace with the insurance laws and service contract laws that govern your industry.

Depending on how your service contract program is structured, or if you are just starting out, some or all of the questions below may be worth exploring…and we can help!

- Do you wonder about recent law changes and need help implementing them accurately and timely?

- Do you need help developing a strategy to expand your program into other states?

- Are you considering the acquisition of an existing provider or program and need a due diligence audit?

- Do you and your program partners have the right license(s) for the kinds of service contracts that you offer or sell?

- Do you qualify for any exemptions that you may be unaware of?

- Are you calculating and returning refunds accurately in every jurisdiction?

- Should you be charging or collecting state sales tax on the sale of your service contracts?

- Could you benefit from a limited scope operational audit conducted by someone that is “on your team” to help identify potential regulatory problems before a regulator does?

- Do you have a knowledgeable resource who can offer issue-by-issue and state-by-state support for regulatory matters that may arise regarding your service contract program?

Be proactive rather than reactive!  Whether it’s regulatory filing support, contract analysis, or help communicating with a regulator, we have the experience and expertise in the world of service contract laws to offer strategies and solutions for every aspect of your program.

Please explore other areas of this site and be sure to read more about our firm’s practice group and its services. Check out our Service Contract and Extended Warranty Law Services and learn more about our Insurance Regulatory Practice Group.

Legislation & Regulatory Activity

  • 10/01/14
    Kentucky – Sale of VSC’s – May Be Insurance?

    UPDATE:  On March 15, 2013, the Office of Insurance of the Commonwealth of Kentucky issued Advisory Opinion 2013-03 concerning motor vehicle service contracts.    It did so in response to numerous inquiries regarding the repeal of its administrative regulation 806 KAR 5:050, as well as what the DOI described as inconsistencies in 304.5-070(1)(p) of Kentucky’s Insurance laws.  This administrative regulation previously imposed registration requirements of certain motor vehicle service contract providers.   According to the DOI, these inconsistencies were brought about through amendments to 190.090, which is found in Kentucky’s law governing Motor Vehicle Sales.  The opinion was issued to clarify read more

    Alaska – MV Service Contracts with Ancillary Benefits

    At long last, Alaska will no longer regulate motor vehicle service contracts as insurance.  Earlier this year, the Alaska Legislature amended the state’s Insurance Code to establish a statutory framework specifically regulating motor VSCs as non-insurance products.     House Bill 206  will be effective January 1, 2014, and will require licensure of both VSC providers (obligors) as well as VSC administrators.    The new law will require providers to demonstrate financial responsibility by either insuring their programs under a qualifying reimbursement insurance policy or maintaining a net worth of $100 million.  Manufacturer-obligated VSCs are exempt if they cover the manufacturer’s own read more

  • 09/12/14
    Colorado – Service Contracts for Consumer Products

    Earlier this year, the Colorado Legislature enacted new law within the state's Insurance Code to govern the sales of a consumer goods service contract.  House Bill 1199 was signed by the Governor in May and will become effective January 1, 2015. This new law establishes a framework for regulating such contracts, in a manner comparable to that which is in place in a number of states.  It contains the following:   - Providers (obligors) are required to register with the Commissioner of Insurance;   - Defines "consumer product" as "any tangible personal property that is distributed in commerce and is read more

    Oklahoma – Service Warranties with Ancillary Products

    Earlier this year, the Oklahoma Legislature amended this state's Service Warranty Act by providing for the inclusion of motor vehicle ancillary protection product benefits in a service warranty.  The new law, which is effective November 1, 2014, defines "motor vehicle ancillary protection product" in pertinent part, as a:   "a protective chemical substance, device or system that is installed or applied to a motor vehicle; is designed to prevent loss or damage to a motor vehicle from a specific cause (not limited to theft), and includes within or as an accompaniment to a service warranty, a written agreement that provides read more

  • 06/30/14
    Florida – Electronic Delivery – Service Contracts

    UPDATE:  House Bill 291  has been signed by the Governor and becomes effective July 1, 2014.     This legislation amends law governing motor vehicle, home and consumer goods service contracts (a.k.a. motor vehicle service agreements and service/home warranties).   It includes the following changes:   Allows for electronic delivery of motor vehicle service agreements (MVSA), home warranties and consumer goods warranties.  Current law requires that a copy of the contract be “mailed or delivered to the purchaser with 45 days of purchase” for MV and home.   It does not specifically address delivery of a consumer goods warranty contract; Any electronic transmission employed must read more

    Indiana- Bulletin 210 – Service Contracts (2014)

    UPDATE:  This post is being further updated to announce the publication of  Bulletin 210, by the Indiana Department of Insurance, which provides guidance and explanation of the agency's implementation of House Bill 1206, effective on July 1, 2014.  This bulletin provides guidance for compliance with this new law governing motor vehicle service contracts.  New informational filings will now be required for certain MV service contract programs.  In addition, the bulletin advises of the continuing applicability of a much older Bulletin (#78) to non-MV service contracts/programs....ones that the new bulletin refers to as covering "homes, personal goods, and utilities".  The new bulletin is available on the DOI's read more

  • 06/30/14
    Washington – Service Contracts and Vehicle Protection Products

    UPDATE - While Washington Senate Bill 5978  died in committee, Senate Bill 5977, which included components of SB 5978, was enacted by the Washington Legislature and became effective on June 12, 2014.   The new law includes the following:   Revises definition of "protection product" (a.k.a.  vehicle protection product), to include a "protective chemical, substance, device or system" .   The benefits offered under a Protection Product Guarantee must be tied to the purchase of a physical protection product that is formulated or designed to make a specified loss or damage less likely to occur once it is properly applied to a vehicle. read more

    Michigan Exemption Bill Passes – MV/Home/Consumer Goods

    FINAL UPDATE -  Michigan House Bill 4467  has been signed by the Governor and was effective immediately.    This very important exemption legislation finally settles the regulatory status of service contracts as non-insurance.    This bill defines "service contract" in a manner consistent with a number of states and declares such contracts to not be subject to the state's insurance code.  Nor will the offering of such contracts be subject any other specific registration or financial responsibility requirements.  This bill's defines an exempt contract as on that promises to:      (i) To perform or provide reimbursement for the repair,  replacement, or maintenance read more

  • 03/07/14
    Virginia MV Ancillary Products Legislation Passes

    UPDATE - Virginia House Bill 69 was signed by the Governor on March 7, 2014.   This bill amends Virginia's current "extended service contract" law to expressly allow the following ancillary benefits in a vehicle service contract:   - Tire and Wheel/Road Hazard - Dent/Ding - Paintless Dent Removal - Windshield Crack Repair - Key Fob replacement - Vehicle Protection Product-type benefits by allowing protection through installed devices or applied chemicals designed to prevent damage or loss to a vehicle.  Such loss is not limited to theft as are some of the country's early VPP laws.   Current law requires all service contract read more

    New Jersey – Service Contracts To Be Regulated

    UPDATE - Finally,  a service contract law the industry can follow in New Jersey.  Senate Bill 854 (companion to previously reported House Bill 1740)  has been signed by the Governor and service contracts will be regulated, but not as insurance.   The Governor's approval ends a very long stretch of legislative efforts by interested parties within the service contract industry and will, once and for all, established a statutory framework for regulation motor vehicle, home and consumer goods service contracts that everyone can understand.    The legislation provides a framework much like the service contract model act adopted in a number of states already.  It read more

The information on this website is provided solely for informational purposes and presents only highly condensed summaries or general information relating to the topics presented. Therefore, it should not be relied upon as a complete record for purposes of regulatory compliance, nor is it intended to furnish legal advice adequate to any particular circumstances.