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.

Legislation & Regulatory Activity

  • 09/24/25
    MARYLAND VSC – Prohibited Practice Update

    Effective October 1, 2025, Maryland HB 1046 prohibits Vehicle Service Contract (VSC) obligors from using Technical Service Bulletins (TSB’s) as sole justification to deny coverage for otherwise eligible vehicle repairs   According to the legislative bill analysis, a Technical Service Bulletin,   or “TSB”, is a notice issued by a vehicle manufacturer to service technicians alerting them to common problems with a specific car model. TSBs typically outline the problem and prescribe repair procedures. According to this analysis, TSBs are not indicative of a manufacturer defect or a recall.   Some VSC obligors currently exclude from coverage under their vehicle service read more

    12/05/24
    NEW HAMPSHIRE – New Filing Requirements

    Changes to New Hampshire's Consumer Guaranty Contracts (aka Service Contract) law go into effect January 1, 2025.   New Annual Reporting Requirements: New Hampshire’s law, as amended, now requires obligors to annually submit detailed information regarding administrators and sellers.  A listing providing name and address of each will be required.   T&Cs Subject to Filing;  Obligors will now be required to file all service contract language with New  Hampshire Insurance Department through the System for Electronic Rates & Forms Filing (SERFF).  The forms are required to be filed on an Informational Basis, i.e., no prior approval. However, if Department finds read more

  • 07/03/24
    FLORIDA – VSC & Home Obligors – new licensure options

    Florida House Bill 989 – This legislation allows Motor Vehicle Service Agreement Associations (a.k.a. VSC obligors) as well as Home Warranty Associations to utilize more than one insurer/CLP to satisfy one of the financial responsibility options currently provided for in the statute.  The legislation also establishes a new “$100M net worth” option Home Warranty Associations to qualify for licensure.   These amendments were effective on May 2, 2024.   read more

    07/03/24
    Florida GAP Waivers and Vehicle Value Protection Agreements

    Florida Senate Bill 902 – This legislation revises the definition of “Guaranteed Asset Protection Product” in the state’s Motor Vehicle Sales Finance law.  As amended, the law will allow benefits under a GAP waiver to include waiver a portion of the cost of a replacement vehicle.  It also will allow a credit, in lieu of waiver, which can be applied toward the purchase of a replacement vehicle.  The new law also provides that a GAP waiver may be cancellable or non-cancellable and establishes a new required “free-look” period.  Any cancellation fee imposed by the waiver after the “free-look” period may read more

  • 12/30/23
    TEXAS – Residential Service Contracts (Home Warranties)

    REMINDER:  Residential Service Companies originally licensed by the Texas Real Estate Commission (TREC) must register with the Texas Department of Licensing and Regulation (TDLR) by January 1, 2024.  Such TREC registrations will no longer be valid after this date.    Background:   House Bill 1560, passed in 2021, transferred responsibility for oversight of the Residential Service Companies (Home Warranties) (RSC)  from the Texas Real Estate Commission (TREC) to Texas Department of Licensing and Regulation (TDLR).  This transfer was effective on September 1, 2021.   Since that time, Residential Service Companies licensed under TREC were permitted to continue operating under that registration read more

    07/15/23
    NEW JERSEY – New Registrations Now Required

    Amendments to New  Jersey’s Service Contract law are effective on August 1, 2023.   The new law establishes a registration require for both administrators and providers (obligors).  Previously, New Jersey's law required neither. The NJ Department of Consumer Affairs has posted the new registration application with instruction on its website.  Check it out at the link below.   https://www.njconsumeraffairs.gov/regulated/Pages/default.aspx   *** For more information about this and other regulatory activity or legislation affecting these industries, visit us at www.servicecontractscompass.com   read more

  • 03/17/23
    COLORADO – Home Warranty Service Contracts

    Colorado House Bill 1134 has been enacted in this state and amends Colorado’s requirements for home warranty service contracts issued pursuant to Title 12, Article 10 regulated by the Division of Real Estate.   Current law defines “home warranty service contract” as:   “any contract or agreement whereby a person undertakes for a predetermined fee, with respect to a specified period of time, to maintain, repair, or replace any or all of the following elements of a specified new or preowned home:   Structural components, such as the roof, foundation, basement, walls, ceilings, or floors; Utility systems, such as electrical, read more

    03/16/23
    COLORADO – GAP Waivers

    House Bill 1181 has been introduced in the State of Colorado.  The bill intends to codify regulations applicable to GAP waivers previously addressed in regulations of the Uniform Consumer Credit Code.   According to materials filed with this legislation, codifying and updating the GAP agreement rules that are in the code of Colorado regulations, the general assembly will provide Colorado consumers with stability, predictability, and efficiency  regarding GAP agreements, while ensuring a fair and viable market for  GAP agreement providers and making important updates to the laws that  govern these agreements.   Specifically, the legislation:   Sets conditions and read more

  • 08/07/22
    New Jersey – Registration for Providers & Administrators

    UPDATE - Senate Bill 902 (Companion to AB 1559) has been approved and will become effective on or about September 1, 2023....yes, a little over a year from now!   Senate Bill 902, provides for the following:   Establishes a registration require for both administrators and providers (obligors).  Previously, New Jersey's law required neither. A new prohibition on certain words that can be used in a provider’s name, products, description of products and “other materials”. Current law only limits certain words in a provider’s name and those words are “insurance”, “casualty”  or “surety”.    The legislation proposes to specific requirements around read more

    11/21/21
    Texas – Residential Service Contracts – New Regulator

    The announcement below is from the Texas Department of License and Regulation (TDLR) regarding the transfer of the regulation of residential service contracts from the Texas Real Estate Commission to TDLR. *********************************** Save the Date!   The Texas Department of Licensing and Regulation (TDLR) will host a virtual Residential Service Companies (Home Warranties) Informational Summit via Microsoft Teams on Tuesday, December 14, 2021. The summit is tentatively scheduled from 10:00 a.m. to 11:30 a.m. (CST) with a short break at the halfway point, followed by a Q&A where you will have an opportunity to ask questions about TDLR and the read more

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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