ID S1077

Repeals Chapter 28, Title 49, Idaho Code relating to motor vehicle service contracts and replaces it with a new regulatory framework under Title 41, Chapters 62 and 63.

Requires motor vehicle service contract providers to obtain service contract liability insurance from insurers meeting specific capital requirements ($15 million surplus or $10 million with premium-to-surplus ratio limits) and file premiums with the Director of Insurance for approval.

Mandates contract provisions including 60-day claim payment deadlines, toll-free claim service numbers, disclosure of deductibles, cancellation rights with refunds within 30 days (up to $50 fee) or pro-rata refunds thereafter, and statements that coverage is not guaranteed by the Idaho Insurance Guaranty Association.

Prohibits service contract providers from using insurance-related terminology in their names or materials, making false or misleading statements, and establishes recordkeeping requirements for 3 years including contract copies, holder information, and claim files.

Creates parallel regulatory framework for theft protection program warranties (Chapter 63) with similar insurance requirements, contract provisions, prohibited acts, and enforcement mechanisms administered by the Director of Insurance.