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 bill also provides new language requiring that VPP warranties, as well as service contracts covering vehicles, homes and consumer goods include a disclosure informing the purchase that coverage under such agreements is not guaranteed by the state’s Property & Casualty Guaranty Association.