Senate Bill 857 - Home Warranty Regulatory Reform

• Expands consumer protections for home service agreements to include all agreements covering appliances and systems in residences, regardless of title (contract, home warranty, extended warranty, etc.).

• Requires service agreement companies to provide detailed discriptions of covered items, types of damage covered, and exclusions in prominent bold text, plus a cancellation notice at the signature line stating consumers may cancel anytime for a pro rata refund minus claims paid and a reasonable administrative fee not exceeding 10%.

• Mandates companies maintain and regularly update lists of approved vendors, allow customers to use approved vendors, and complete or schedule completion of claims for essential items (heating, air-conditioning, single bathroom) within five business days or pay for out-of-network repair.

• Requires companies to provide electronic or paper copies of agreements at signing in formats accessible to people with disabilities.

• Appropriates $50,000 in recurring funds for the 2024-2025 fiscal year to the Office of the Attorney General to enforce service agreement provisions; effective October 1, 2024 for new agreements.