MI HB4467

Service contracts are exempted from insurance regulation and are not subject to Michigan's insurance code (1956 PA 218).

Service contracts are defined as written contracts sold for a stated consideration covering repair, replacement, or maintenance of consumer products for operational failures, defects, accidental damage, or normal wear and tear.

Service contracts for motor vehicles are excluded from insurance regulation when they cover repair or replacement due to additive product failure, tire or wheel damage from road hazards, paintless dent removal, windshield chip or crack repair, or replacement of lost or stolen keys or key fobs.

Consumer products under this exemption include any tangible personal property distributed in commerce and normally used for personal, family, or household purposes, whether standalone or attached to real property.

The act took effect immediately upon the Governor's approval on April 7, 2014.