IN HB1377

Requires home warranty providers to obtain a license from the Department of Insurance and deposit a $100,000 surety bond, securities, or cash before offering home warranties in Indiana.

Home warranty providers must submit warranty forms to the Department of Insurance for review and approval before using them.

Warranty holders have a three business day right to rescind a home warranty and receive a full refund after acknowledging receipt of the warranty contract in writing.

Prohibits home warranty providers from limiting their obligation to a specified dollar amount regardless of actual repair or replacement costs.

If a home warranty includes an arbitration clause, warranty holders cannot be required to pay repair costs before arbitration, and arbitration must be held in the county where the warranty holder resides; violations are treated as unfair and deceptive insurance practices enforceable by the Attorney General.