If you are a provider, administrator, seller or insurer of service contracts; or want to be, let us be your resource for valuable information and services to help you establish and maintain a compliant 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 regulatory standards of 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 can 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.

Home Page Archive

  • 07/12/10
    California AB 2111 – VSCs and Consumer Goods Contracts

    California Assembly Bill 2111 continues to make progress in state's legislature having cleared the Assembly and is now under consideration in the Senate.  After further amendment regarding a carve out for contracts that provide for the maintenance of structural wiring associated with the delivery of cable, this bill has cleared passed out of three Senate Committees.   As reported earlier, AB 2111 proposes numerous changes affecting both vehicle service contracts and consumer goods service contracts.   For example, existing law  requires that prior to incurring an obligation under a VSC, an obligor must file with the Insurance Commissioner,  a copy of an insurance policy covering 100% of the read more

    03/22/10
    Washington HB 3032 – Stand-Alone Tire & Wheel Coverage

    UPDATE:  House Bill 3032 (companion to SB 6624) was signed by the Governor last week and becomes effective June 10, 2010.  This new law clarifies that a motor vehicle service contract may provide benefits relating to the repair or replacement of tires or wheels which are damaged as a result of coming in contact with road hazards, i.e., potholes, rocks, glass, etc.  The new law further clarifies that such a benefit can be offered on a stand-alone basis, and does not necessarily have to be a part of a contract that covers other parts of the vehicle.   The new law exempt a tire or wheel read more

  • 03/22/10
    Virginia HB 532 – Exemption for Home Service Contract Providers

    UPDATE:  Virginia House Bill 532 has been signed by the Governor and becomes effective July 1, 2010.  This new law establishes an exemption from regulation for home service contract providers that can demonstrate a net worth in excess of $100 million.  The Virginia Bureau of Insurance is in the process of developing a protocol for requesting such an exemption and further guidance will be published on its website at  http://www.scc.virginia.gov/division/boi/index.htm in the coming weeks.    The law did not change with respect to all other home service contract providers who are required to be licensed with the Virginia Bureau of Insurance and meet various qualifications including, but not limited to,  maintaining minimum read more

    03/15/10
    PDR and Road Hazard Considered in New York and Wyoming

    Bills in at least two states are moving through state legislatures to allow for Paintless Dent Removal (PDR) services as a form of service contract.  In New York, SB 2092 has advanced to its Third Reading in the Senate and would amend the state's definition of "service contract" by including a contract offered by or for the supplier or seller of PDR services.  Consistent with other state laws governing such agreements, this bill does not allow a service contract to  include services that involve the replacement of vehicle body panels, sanding, bonding or painting.    In Wyoming,  House Bill 90 was signed by the Governor read more

  • 01/30/10
    Louisiana – New Home Service Contract Provider Registration

    A new law regulating the home service contract industry became effective January 1, 2010 .  The new law requires registration of any home service contract provider operating in that state.  To qualify as a home service contract provider, an entity must file its organizational documents (Articles of Incorporation, ByLaws) and demonstrate compliance with one of three financial responsibility requirements:  insurance backing the service contract program; file a surety bond with the state’s Department of Insurance and maintain a reserve fund to pay future claims, or show evidence of having a net worth of at least $25 million.   The law also read more

    01/20/10
    California Assembly Bill 63 (2009) – New Retailer Requirements

    This new law, amending California’s Civil Code, now requires any retailer that sells  service contracts to either maintain contract information that includes a description of the terms and conditions of the service contract and to provide that information to the purchaser of the service contract upon request, or to obtain an actual copy of the actual service contract and make a copy available to the purchases upon request.  Either form of documentation must be provided to the purchaser or other beneficiary of the service contract within 10 business days of the request.  This requirement only applies during the period time read more

  • 01/20/10
    Arkansas – Amendment to Service Contract Act

    Due to a codification error in the Service Contracts Act, which was enacted in 2007, the Arkansas Department of Insurance pursued an amendment in the state's 2009 legislative session addressing financial responsibility requirements of service contract providers.    According to the Department's Bulletin 6-2009, the original law required a service contract provider to meet the financial requirements for doing business in that state by only placing a minimum of $25,000 on deposit with the Department.   This, according to the DOI, allowed providers to be less financially secure than was intended.  The 2009 amendment sets forth the three ways a provider can comply with the Act’s applicable financial requirements which 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.