Arizona Senate Bill 1381, signed by the Governor April 5, 2018, finally brings this state’s regulation of motor vehicle, consumer goods and home service contracts in line with the vast majority of other states regulating such agreements. The bill adds to the current definition of “service contracts” express authority to provide the following common benefits in a service contract:
Accidental Damage from Handling
Power Surge
Tire & Wheel repair due to Road Hazard
Paintless Dent Removal
Key / Key Fob Replacement
Notably absent from the new law is the allowance for windshield crack repair due to encountering a road hazard.
While service contract forms remain subject to prior approval of the Department of Insurance, advertising materials are not longer subject to filing with the agency.
This legislation is effective on August 3, 2018.