ID H0521

Repeals Chapter 28, Title 49, Idaho Code and establishes the Idaho Motor Vehicle Service Contract Act as Chapter 62, Title 41, regulating motor vehicle service contracts offered by entities other than manufacturers or their affiliates.

Requires motor vehicle service contract providers to maintain service contract liability insurance from insurers with minimum surplus and paid-in capital of $10-15 million dollars and file audited financial statements with the Idaho Department of Insurance.

Mandates motor vehicle service contracts include specific consumer protections: 30-day cancellation with full refund (minus $50 maximum fee), pro rata refunds for later cancellations, conspicuous disclosure that purchase is not required for vehicle financing, and claim procedures.

Prohibits motor vehicle service contract providers from using words like "insurance," "casualty," or "surety" in names or contracts, and from making false or deceptive statements regarding manufacturer affiliation or warranty status.

Establishes recordkeeping requirements for all contracts and contract holders for at least three years after coverage expires, with civil penalties up to $1,000 per violation (maximum $25,000 aggregate) for violations enforceable by the Director of Insurance.