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.

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 of a consumer product because of the  

operational or structural failure of the consumer product due to a  

defect in materials or workmanship; accidental damage from  

handling, power surge, or interruption; or normal wear and tear,  

with or without additional provisions for incidental payment of  

indemnity under limited circumstances, including, but not limited  

to, towing, rental, and emergency road service. 

     (ii) The repair or replacement or indemnification for the  

repair or replacement of a motor vehicle for the operational or  

structural failure of 1 or more parts or systems of the motor  

vehicle brought about by the failure of an additive product to  

perform as represented. 

     (iii) The repair or replacement of tires or wheels on a motor  

vehicle damaged as a result of coming into contact with road  

hazards, including, but not limited to, potholes, rocks, wood  

debris, metal parts, glass, plastic, curbs, or composite scraps. 

     (iv) The removal of dents, dings, or creases on a motor vehicle  

that can be repaired using the process of paintless dent removal  

without affecting the existing paint finish and without replacing  

vehicle body panels, sanding, bonding, or painting. 

     (v) The repair of small motor vehicle windshield chips or  

cracks, or if a windshield cannot be repaired, the replacement of  

the windshield. 

     (vi) The replacement of an inoperable, lost, or stolen motor  

vehicle key or key fob.

This bill defines “consumer product” tangible personal property distributed in commerce and normally used for personal, family or household purposes including any property intended to be installed or attached in real property whether or not it is installed or attached.

The legislation is effective upon enactment (signature of the Governor).

 

 

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