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You are here: Home / Business / Warranty Bill Goes to Governor

Warranty Bill Goes to Governor

May 8, 2007 By admin Leave a Comment

Companies selling extended service warranties will come under a new state law passed by the legislature.  The senate has sent the bill to the governor for his signature.

The bill that requires anybody issuing or selling product service contracts, as they’re called,  to register and pay a fee with the state insurance department. It also requires providers of those contracts to have adequate cash reserves, insurance, or a net worth to cover contract obligations. It also prohibits misleading advertising, requires good record keeping, and limits termination practices.

 

 It’s HCS HB221.

 

 

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