|SB 0477||Regulates the sale of motor vehicle extended service contracts|
|LR Number:||1527S.02I||Fiscal Note:||1527-02|
|Committee:||Commerce and Environment|
|Last Action:||04/03/03 - SCS Voted Do Pass S Commerce and Environment||Journal page:|
|Title:||SCS SB 477|
|Effective Date:||January 1, 2007|
SCS/SB 477 - This act regulates the sale of motor vehicle extended service contracts for the repair, replacement or maintenance of motor vehicles. The act does not apply to warranties, maintenance agreements, commercial transactions and service contracts sold to non-consumers. The act requires those providing service under a motor vehicle extended service contract to demonstrate financial responsibility by insuring the service contracts under reimbursement insurance policies or by other means such as providing a surety bond. Service contract administrators are required to register with the Department of Insurance. The act provides for the requirements of a reimbursement insurance policy for insuring a motor vehicle extended service contract. The act specifies the form and content of motor vehicle extended service contracts and requires contract administrators to maintain certain records. This act provides for civil penalties for violating the act and gives the Director of the Department of Insurance various powers to enforce the act's provisions.
This act is based after the National Association of Insurance Commissioners (NAIC) Service Contracts Model Act.
This act has an effective date of January 1, 2007.