Bill > HB1046

This bill modifies Maryland law regarding mechanical repair contracts by prohibiting these contracts from excluding coverage or denying service claims based solely on issues identified in a technical service bulletin (TSB). A technical service bulletin is a notification from a vehicle manufacturer to dealerships and service centers about a specific problem or condition that has been identified in a particular vehicle model or system. Under this new law, if a vehicle experiences an issue that has been previously noted in a manufacturer's technical service bulletin, a mechanical repair contract provider cannot automatically refuse to provide service or coverage just because the problem was previously documented. The bill aims to protect consumers by ensuring that mechanical repair contract providers cannot use TSBs as a blanket reason to deny legitimate repair claims. The legislation will take effect on October 1, 2025, and applies to mechanical repair contracts sold by licensed vehicle dealers, obligors, or agents. By preventing contract provisions that preclude coverage based solely on TSB-identified issues, the bill seeks to provide more comprehensive protection for vehicle owners and ensure fair treatment in mechanical repair contract services.

Budget and Finance, Business and Industry

https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/HB1046?ys=2025RS