We have been monitoring several bills throughout the first half of the year with a number of measures enacting substantive legislation affecting some aspect of the service contract industry. By June 1, thirty states will have concluded their regular legislative sessions for the year. Another sixteen will still be in session. The remaining states did not convene this year as they meet only every other year.
We have seen a lot of activity in the Paintless Dent Removal and Tire & Wheel areas. We’ve also seen at least two states establish new standards for CLP insurers and at least one state eliminate the reserving option as a means of complying with financial responsibility requirements for certain service contract providers. Some of the new legislation may require regulatory filings for certain programs. New penalties and regulatory oversight authority have been adopted in at least two states as well.
Legislation seeking to exempt service contracts from regulation as insurance is stilling pending in at least two states. We will continue to monitor activity in the handful of states where the state’s legislature is still in session and where service-contract-related bills remain active. Stay tuned to The Service Contracts Compass for further updates regarding these bills and check out Our Services to learn more about how we can help you analyze the impact of new legislation on your programs.
