Bill No. 1085 amends the Service Warranty Act by modifying the administrative fee structure for service warranty associations and insurers. The bill establishes a tiered fee system that will gradually reduce the percentage of the gross provider fee assessed from 2% to 1% over the next few years. Specifically, starting January 1, 2026, the fee will decrease to 1.75%, and then to 1% by January 1, 2027. Additionally, the option for entities to pay an annual administrative fee will also increase from $3,000 to $3,350 by 2027, and further to $3,700 by January 1, 2028.

The bill also maintains the requirement for service warranty associations and insurers to file annual financial statements with the Insurance Commissioner, and it allows for the imposition of fines for late filings. The changes aim to provide a more manageable fee structure for service warranty providers while ensuring compliance with financial reporting requirements. The act is set to take effect on January 1, 2026.

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