Raised Bill No. 322 Summary

• Repeals and replaces section 42-260 of general statutes effective October 1, 2024, to establish comprehensive regulations for motor vehicle extended warranties and vehicle theft protection product warranties in Connecticut.

• Defines "extended warranty" to include coverage for tire/wheel repairs from road hazards, paintless dent removal, windshield repairs, key/key fob replacement, and lease-end wear damage, but excludes portable electronics insurance.

• Requires extended warranty providers to be insured under extended warranty reimbursement insurance policies issued by state-authorized insurers maintaining at least $15 million surplus and a 3-to-1 net premium ratio, or maintain adequate claim reserves held in trust and certified annually by an actuary.

• Mandates extended warranty contracts contain specific disclosures including product description, coverage duration, transfer restrictions, exclusions, service procedures with provider contact information, cancellation rights, and insurer details for claim filing.

• Establishes that extended warranty and vehicle theft protection product warranty contracts do not constitute engaging in the insurance business; directs Insurance Commissioner to develop arbitration regulations for disputes between providers and buyers.