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

  • 04/03/17
    Oklahoma – Forms No Longer Subject to Prior Approval !

    Oklahoma Senate Bill 427 has cleared both chambers of the Legislature and was ordered for Enrollment today.  SB 427 includes the following amendments to the state's Service Warranty Act:   Eliminates the current requirement to file service contract/warranties for prior approval; instead they must be filed on an Informational basis only; Provides the Commissioner of Insurance with the authority to order a Service Warranty Association to stop using a service warranty form if the Department finds that the form is misleading, deceptive or otherwise violates the service warranty law; Relaxes the current requirement that a Service Warranty Association's Oklahoma license read more

    Arkansas – VPP and Ancillary Benefits

    Arkansas Senate Bill 279, which has been signed by the Governor and will become law 90 days after the Legislature adjourns, expands this state's motor vehicle service contract law by authorizing the following types of contracts:   Tire & Wheel/Road Hazard Windshield Crack Repair or Replacement Key or Key Fob Replacement Paintless Dent Removal Theft Protection Program Warranty (a.k.a. Vehicle Protection Product Warranty).   Currently, no registration is required for vehicle service contract providers.  Similarly, this bill does not establish a registration requirement for VPP warrantors;  however VPP warranties must be insured under a qualifying reimbursement insurance policy and must read more

  • 03/25/17
    Virginia – Home Service Contracts

    UPDATE:  Virginia House Bill 1542  has been signed by the Governor and will become effective January 1, 2018.  The Bill transfers the regulation of Home Service Contracts from the Bureau of Insurance to the Department of Agriculture and Consumer Services.  Currently the Bureau of Insurance regulates both Home Service Contracts Providers as well as Home Protection Companies.  The primary difference in the contracts offered by these two types of companies is that Home Protection contracts include coverage for major structural components of a home.   Under the new law, providers of contracts not covering major structural components, but providing for read more

    Utah -Service Contracts & Maintenance Agreements

    UPDATE:  This bill has been signed by the Governor and should take effect on or about May 9, 2017.   Utah Senate Bill 55 would amend the state’s service contract law by expanding the definition of “service contract” by authorizing the benefits relating to the:   Accidental damage from handling Power Surge/Interruption Towing/Emergency Road Service and Car Rental Food Spoilage   This bill also expressly exempts a prepaid contract provide for routine maintenance from classification as a service contract.     read more

  • 01/24/17
    Nevada – Service Contracts – New Requirements

    Legislation has recently been filed in Nevada to amend the state’s current requirements for qualifying as a provider of motor vehicle, home or consumer goods service contracts.  Nevada Assembly Bill 83 would require a biographical affidavit, (called a “completed personal information form” in the bill), for each controlling person of the provider.   “Controlling person” is defined as the President, Secretary and Directors of a corporation; a General Partner of a partnership or limited partnership or any person who possesses direct or indirect control of at least 25% of the voting securities of a corporation or who has the authority read more

    Missouri – MV Ancillary Products Permitted

      UPDATE: Missouri House Bill 1976 has passed OVER the Veto of the Governor. This action occurred on September 14, 2016. As a result, the bill as passed will become law on October 14, 2016. This legislation amends Missouri's Motor Vehicle and Consumer Goods Service Contract law in the following ways: 1) - Amends the definition of "manufacturer" to now include an affiliate of such manufacturer. The legislation does not define the term "affiliate"; 2) - Allows cancellation refunds to be effectuated through the retail seller of the service contract. 3) - Authorizes the inclusion of ancillary coverages in a read more

  • 06/06/16
    Maryland – Retail Sellers of VSCs Expanded

    Maryland House Bill 675 was recently signed by the Governor.  This legislation addresses an issue that was seemingly overlooked in last year’s update to this state’s Mechanical Repair Contract (a.k.a. Vehicle Service Contract) law.   Under the current law, only registered obligors or licensed Motor Vehicle Dealers are permitted sell a VSC.  In other words, no third-party sellers, such as a contracted call center, were permitted to sell VSCs in this state.   This legislation, which becomes effective October 1, 2016, authorizes an “agent”, as well as a registered obligor or MV dealer to offer, sell, or negotiate a mechanical read more

    Colorado – Expands MV Service Contract Benefits

    Colorado House Bill 1317 amends the state’s definition of “motor vehicle service contract” by allowing new ancillary benefits including: repairing or replacing tires or wheels on a motor vehicle damaged as a result of coming into contact with road hazards; removing 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; replacing or repairing a windshield damaged by road hazards; replacing a motor vehicle key or key fob if the key or key fob becomes read more

  • 05/01/16
    Utah Service Contracts and VPP Warranties

    Utah House Bill 36 has been signed by the Governor and will be effective on May 10, 2016.  In an omnibus bill proposed by the Utah Department of Insurance, sections of the state's service contract law will be amended.   Specifically, HB 36 modifies the definition of "Service Contract Reimbursement Policy" or "Reimbursement Policy" to now include coverage of the obligations of either a service contract provider (obligor) as well as a Vehicle Protection Product Warrantor.    While this state's law already regulates the offering of VPP warranties, the law provides added clarification and a few technical updates.   The read more

    New Jersey – GAP Waiver Model Legisation

    Legislation to enact the industry "model" relating to offering Guaranteed Asset Protection ("GAP") waivers was recently introduced in the State of  New Jersey.   Assembly Bill 3601 would provide a clear statutory framework within which GAP waivers could be offered in this state.   The legislation defines and distinguishes various types of creditors that may offer GAP waivers and would require that only licensed motor vehicle dealers to insure their GAP waiver obligations under an appropriate reimbursement insurance policy.  Such dealers would not be required to insure GAP waivers offered in connection with leased vehicle.  Other types of creditors are permitted, 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.  (c) Copyright Shirley F. Kerns 2016