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 SERVICES and ABOUT US  to learn more.

Nevada Assembly Bill 74 – Eliminates Reserving/Deposit Option

AB 74, which was recently signed by Nevada’s Governor, will eliminate one of the industry’s standard methods for service contract providers to satisfy financial responsibility requirements in that state. The new law, effective October 1, 2011, eliminates the reserve account and deposit method that has been available for many years.

 

The new law, which applies to motor vehicle, consumer goods and home service contract programs, maintains the ability to insure a service contract program through a contractual liability policy or for a provider to demonstrate a $100M net worth. However, the new law now prohibits use of a contractual liability policy issued by an insurer affiliate.

 

The Nevada Division of Insurance is considering how the term “affiliate” will be defined and will likely do so through administrative rulemaking. The Division also has indicated, at least as of this time, that it does not believe the new law provides for “grandfathering” of the reserve option for contracts that are in-force at the time the new law becomes effective.  However, the Division is considering a plan to synchronize the enforcement of the new law with the renewal date of a provider’s registration, following October 1, 2011.

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.