HB 811 Summary

• Establishes licensing requirements for producers (individuals and business entities) selling motor vehicle extended service contracts, with initial and renewal fees not exceeding $100 for businesses and $25 for individuals.

• Requires providers to deliver fully executed service contracts to consumers within 45 days of initial payment and permits consumers to request unsigned copies before payment processing.

• Mandates a free look period of at least 20 business days (or 10 days if delivered at time of sale) allowing consumers to cancel and receive full refunds minus any claims paid, with a 10 percent monthly penalty on late refunds.

• Prohibits false or misleading representations regarding manufacturer affiliations, warranty status, or contract terms, and prohibits requiring service contract purchases as loan conditions; violations constitute level one, two, or three violations depending on severity.

• Authorizes the Director of Insurance to suspend, revoke, or deny licenses based on fraud, incompetence, financial irresponsibility, felony convictions, or failure to comply with child support or tax obligations.