NC H957

Expands consumer protections for home service agreements by requiring companies to provide a list of covered items, detailed descriptions of coverage and exclusions in bold type, and a cancellation notice in 10-point bold font near the signature line.

Requires home service agreement companies to provide electronic or paper copies of agreements in accessible formats, maintain an updated list of company-approved vendors, and complete or schedule repairs for essential items (heating, air-conditioning, single bathroom) within five business days or pay for out-of-network service.

Allows consumers to cancel service agreements at any time after purchase and receive a pro rata refund minus claims paid and a reasonable administrative fee not to exceed 10% of the refund amount.

Motor vehicle service agreements must allow consumers to assign coverage to a subsequent purchaser before expiration if the purchaser meets the same eligibility criteria as the original purchaser.

Appropriates $50,000 in recurring funds to the Office of the Attorney General for fiscal year 2024-2025 to enforce these provisions; effective October 1, 2024 for service agreements entered into on or after that date.