HB154 Summary

• Requires service contract providers to define the terms "repair," "replace," and "cash value" in all contracts, with "cash value" defined as any term referring to the provider's right to pay a cash payment instead of repairing or replacing property.

• Mandates that providers disclose on the first page of contracts in boldface print (no smaller than the largest type except headings) any liability limits and the provider's right to pay cash value less than the cost to repair or replace the property.

• Requires disclosure of the provider's right to pay cash value in lieu of repair or replacement in all marketing and advertising content in the same type size or larger than all other type except headings.

• Applies to both insured service contracts (backed by reimbursement insurance) and uninsured contracts (backed by the provider's full faith and credit), with specific statement language required for each type.

• Becomes effective on October 1, 2024.