CS for SB 2618 - Warranty Associations

• Eliminates prior approval requirements for service agreement, home warranty, and service warranty forms, replacing them with authority for the Office of Insurance Regulation to order companies to stop using noncompliant forms

• Makes it a first-degree misdemeanor for any person to provide or offer to provide motor vehicle service agreements, home warranties, or service warranties without a subsisting license

• Changes periodic examinations from mandatory to discretionary for all three warranty association types, requiring the office to consider factors including time licensed, compliance history, consumer complaints, and financial condition

• Adds requirement that consumers receive a sample copy of warranty terms and conditions prior to sale upon request, with compliance possible through physical copies or website access

• Consolidates financial reporting to annual submissions (by March 1) and eliminates quarterly reporting requirements for service warranty associations; repeals multiple outdated rate filing and reporting provisions