AL HB5

Advertisements for service contracts must disclose in boldface print any provider right to refund contract holders an amount less than the cost of repair or replacement

Service contracts must disclose in boldface print all limitations, exceptions, and exclusions, including any caps on repair/replacement/refund amounts and any provider right to offer reduced refunds

Mobile telecommunications service providers are added to the list of entities exempt from most service contract regulations (joining electric, gas, water, and telephone utilities)

New definitions added for "refund," "repair," and "replace" to clarify provider obligations when covered property fails operationally or functionally

Effective date: January 1, 2027