AZ SB1039

Expands definition of "consumer product" to include items that become part of real property or are typically transferred with real property as integral utility appliances or systems.

Lowers the net worth threshold for affiliated corporations issuing service contracts from $100 million to $25 million annually, and removes the requirement for independent audit certification.

Clarifies that preexisting conditions can only be excluded from service contracts if they were not known and would not have been reasonably known through visual inspection, operation, or mechanical testing.

Specifies that administrative cancellation fees for service contracts may not exceed $75 or 10% of the purchase price (whichever is less) and cannot exceed the refund amount owed to the contract holder.

Modifies disclosure requirements to specify that contract holders' fraudulent acts and misuse of covered products are acts that may cancel or void coverage.