Need help navigating the service contract, extended warranty or GAP waiver regulatory process?

If you are a provider, administrator, seller or insurer of service contracts or GAP waivers; or want to be, let us be your guide to all the state service contract/extended warranty and GAP waiver 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, extended warranty or GAP 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 or GAP waiver programn and by offering compliance consulting services that can help you keep pace with the insurance laws. service contract laws and GAP waiver 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?

– 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.

Florida SB 2176 – Service Agreement & Warranty Associations Passes

Florida’s Senate Bill 2176, proposing numerous changes to the state’s service agreement/service warranty association laws, was signed by the Governor yesterday and is effective January 1, 2011 although many sections affecting service warranties are effective upon signature of the Governor.

 

Key provisions of the legislation include:

 

  • Exempts, from regulation under the Florida Insurance Code, motor vehicle service agreements that are sold to “non-consumers”,  i.e., commercial entities or purposes

 

  • Broadens the definition of home warranty service agreements.

 

  • Eliminates the requirement to file warranty service agreements with the Office of Insurance Regulation (OIR) for approval; however, the amendment provides that OIR may order a form not to be used if it doesn’t meet  statutory requirements for content.  This applies to all forms of service agreements or service warranties.

 

  • Eliminates the requirement for home warranty associations and motor vehicle service agreement companies to file rates with OIR

 

  • Requires that all forms of warranty contracts sold in Florida must be accompanied by a written disclosure to the consumer that the rate charged for the contract is not subject to regulation by the OIR. This particular requirement is effective July 1, 2011.

 

  • Eliminates requirement to file quarterly financial reports in favor or an annual financial report requirements for warranty associations

 

  • Makes periodic OIR examinations discretionary and provides factors to consider in choosing to conduct an examination

 

  • Provides that there is no violation for knowingly overcharging the cost of a motor vehicle service agreement if a service agreement company refunds any excess premium within 45 days

 

  • Makes a failure to provide a complete sample copy of the terms and conditions of a service or warranty agreement prior to sale an unfair practice, but provides that this information may be provided online

 

  • Allows premium increases in renewal home warranty contracts if supported by claims history or claims cost data

 

  • Removes OIR’s ability to require additional regular or special reports from home warranty associations

 

  • Provides that unlicensed activity by warranty associations is a first-degree misdemeanor

 

 

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.  (c) Copyright Shirley F. Kerns 2016