HB 14-1199 Summary

• Creates comprehensive regulatory framework for consumer goods service contracts in Colorado, excluding warranties, maintenance agreements, and contracts on items under $100

• Requires service contract providers to register with the Insurance Commissioner, maintain financial security (either through reimbursement insurance policies or $100 million net worth), and provide clear contract disclosures to consumers

• Establishes consumer protections including 10-20 day right to void contracts with full refund, cancellation rights with pro-rata refunds, prohibition on misleading company names, and ban on requiring service contracts as condition of sale

• Grants Insurance Commissioner authority to conduct examinations and impose penalties up to $500 per violation ($10,000 aggregate) for violations of the statute

• Appropriates $13,560 and 0.2 FTE to the Department of Regulatory Agencies for administration; effective January 1, 2015, subject to voter approval if referendum petition filed within 90 days