Bill No. 1085 amends the Service Warranty Act by modifying the administrative fee structure for service warranty associations and insurers. The bill introduces a tiered fee system that will gradually reduce the percentage of the gross provider fee assessed over the next few years. Specifically, starting January 1, 2026, the fee will decrease to 1.75% of the gross provider fee, followed by a further reduction to 1% on January 1, 2027. By January 1, 2028, the bill establishes a flat annual fee of $3,700 for all service warranty associations and insurers.

Additionally, the bill maintains the requirement for service warranty associations and insurers to file annual financial statements with the Insurance Commissioner, along with the possibility of quarterly statements or special reports as deemed necessary. The current fine for failing to file these statements remains unchanged at up to $100 per day. Overall, the bill aims to streamline the financial obligations of service warranty providers while ensuring proper oversight by the Insurance Commissioner.

Statutes affected:
Introduced: 15-141.14
House Committee Substitute: 15-141.14
Floor (House): 15-141.14
Floor (Senate): 15-141.14
Engrossed: 15-141.14