AL SB185

Requires service contract providers to define the terms "repair," "replace," and "cash value" or any equivalent term referring to cash payment settlements in their contracts.

Mandates disclosure on the first page of service contracts in boldface type of any maximum liability limits and the provider's right to pay cash value instead of repairing or replacing covered property.

Requires the same cash value payment disclosure to appear in all marketing and advertising content in type size equal to or larger than other text except headings.

Specifies minimum eight-point type size for all service contracts and requires contracts to include standard provisions regarding deductibles, property descriptions, limitations, cancellation terms, and coverage of consequential damages or preexisting conditions.

Becomes effective October 1, 2024.