CA AB2354

Repeals Section 116.5 of the Insurance Code regarding express warranties on motor vehicle lubricants, treatments, fluids, or additives.

Expands the definition of "vehicle service contract" to include agreements for replacement of motor vehicle keys or key fobs and agreements conditioned upon the use of specific brands of lubricants, treatments, fluids, or additives.

Defines "road hazard" as a hazard encountered while driving that may include potholes, rocks, debris, metal parts, glass, plastic, curbs, or composite scraps for purposes of vehicle service contract coverage.

Exempts employer-provided agreements that offer mileage reimbursement, routine vehicle maintenance, or noncollision repairs to employees for personal vehicles used in the employer's business from insurance regulation.

Requires vehicle service contract forms filed with the commissioner to include specific disclosures about insurance company guarantees and California Department of Insurance contact information, with conspicuous exclusion language in boldface type.