The Service Contracts Compass » Features

State Sales Tax

admin — Tue, 05 Apr 2011 23:34:28 +0000

Almost every state, plus the District of Columbia, has a state sales tax. But do you know how many state sales tax laws apply to the purchase of a service contract? The answer is approximately 35. In at least one state, sales tax is applicable to the sale of motor vehicle and consumer goods service contracts, but not to home service contracts. In another state, the sales tax is due only if the obligor of the service contract is an entity other than a licensed insurance company. Failure to collect sales tax when it is applicable can lead to lost revenues and even administrative penalties. Be sure that your program has all the right information to avoid adverse consequences.

A Leading Insurance Regulatory Practice Group In The Country

admin — Thu, 01 Jul 2010 14:55:29 +0000

In June, 2010, the Insurance Regulatory Practice Group of the Pennington, Moore, Wilkinson, Bell & Dunbar law firm was recognized by Chambers USA, which ranks U.S. attorneys and practice areas, as one of the Top Insurance Regulatory Practice Groups in the country. Chambers USA ranks the leading firms and lawyers in a variety of practice areas throughout America. The guide is developed through in-depth, client-focused research, and is read by industry-leading companies and organizations across the U.S. and worldwide. Check out the OUR SERVICES tab to see what we have to offer your Service Contract Program.

Mid-Year Legislative Update

admin — Fri, 21 May 2010 05:53:09 +0000

We have been monitoring several bills throughout the first half of the year with a number of measures enacting substantive legislation affecting some aspect of the service contract industry. By June 1, thirty states will have concluded their regular legislative sessions for the year. Another sixteen will still be in session. The remaining states did not convene this year as they meet only every other year.

We have seen a lot of activity in the Paintless Dent Removal and Tire & Wheel areas. We’ve also seen at least two states establish new standards for CLP insurers and at least one state eliminate the reserving option as a means of complying with financial responsibility requirements for certain service contract providers. Some of the new legislation may require regulatory filings for certain programs. New penalties and regulatory oversight authority have been adopted in at least two states as well.

Legislation seeking to exempt service contracts from regulation as insurance is stilling pending in at least two states. We will continue to monitor activity in the handful of states where the state’s legislature is still in session and where service-contract-related bills remain active. Stay tuned to The Service Contracts Compass for further updates regarding these bills and check out Our Services to learn more about how we can help you analyze the impact of new legislation on your programs.