DE HB106

Establishes statutory definitions for service contracts, vehicle theft protection products, and related warranties in Delaware Code Title 18, replacing prior guidance from 1993 letter and 1997 bulletin.

Defines "service contract" to include repair, replacement, or maintenance agreements for consumer products covering defects, accidental damage, normal wear and tear, and specific motor vehicle services like tire repair from road hazards, windshield replacement, paintless dent removal, and key replacement.

Defines "vehicle theft protection product" as a device or system installed on motor vehicles designed to prevent theft and includes a warranty providing incidental cost reimbursement if the device fails to prevent loss or damage.

Clarifies that service contracts, vehicle theft protection product warranties, and maintenance agreements are not considered insurance products and are not subject to Delaware insurance laws unless expressly made applicable.

Provides the Department of Justice with statutory authority to regulate service contracts and product warranties, replacing reliance on administrative bulletins and departmental letters.