General Assembly Raised Bill No. 1425 seeks to amend existing laws concerning motor vehicle protection products, particularly focusing on extended warranties and vehicle theft protection products. The bill introduces new definitions for "extended warranty," which now encompasses coverage for services such as tire and wheel repair, paintless dent removal, windshield repair, and lost or inoperable vehicle keys. It also defines "vehicle theft protection product" and establishes a framework for warranties covering theft protection device failures. Key provisions require extended warranty providers to supply necessary services without additional charges, include specific information in warranties, and ensure that warranties are only sold by providers insured under an extended warranty reimbursement insurance policy.

Additionally, the bill expands the scope of entities subject to insurance assessments by including extended warranty providers and warrantors of vehicle theft protection products, replacing previous language that only referred to domestic insurance companies. It mandates that these entities pay assessments in two equal installments annually and outlines a fair assessment process based on actual expenditures. The Insurance Commissioner is tasked with assessing these entities and notifying them of any discrepancies. The bill aims to enhance consumer protection and regulatory oversight in the extended warranty sector, with an effective date set for October 1, 2025.

Statutes affected:
Raised Bill: 42-260