HB 1379 Summary

• Eliminates pre-approval requirements for service agreement and home warranty forms by the Office of Insurance Regulation, replacing mandatory filing with authority for the office to order companies to stop using noncompliant forms.

• Makes operating without a subsisting license a first-degree misdemeanor for service agreement companies, home warranty associations, and service warranty associations.

• Removes mandatory quarterly reporting requirements and replaces mandatory examinations with discretionary examinations based on company tenure, compliance history, consumer complaints, and financial condition.

• Requires service agreement companies to provide consumers with sample copies of contract terms and conditions prior to sale upon request, with compliance allowed through direct provision or website display.

• Adds consumer protections including prohibitions on deceptive advertising about manufacturer affiliations and warranties, requirements for company-approved rebates, and clarifications on premium refund calculations.