Bill > HB504

This bill establishes new regulations for "vehicle value protection agreements," which are contracts where a provider agrees to offer a benefit to a consumer if their covered vehicle experiences an adverse event, and this benefit can be applied towards a replacement vehicle or its financing. The bill defines key terms like "provider" (the company offering the agreement), "consumer" (the person buying the agreement), and "administrator" (a person delegated by the provider to handle administrative tasks like claims). It requires providers to either be licensed insurers with specific financial reserves or maintain their own substantial financial security, such as a funded reserve account or a trust with the state, to ensure they can fulfill their obligations. The bill mandates clear disclosures to consumers about the agreement's terms, including charges, eligibility for benefits, cancellation rights, and refund procedures, and specifically requires a "free look period" of at least 30 days during which a consumer can cancel for a full refund. It also prohibits making these agreements a condition for obtaining a vehicle loan or purchase contract and grants the Attorney General enforcement powers, including the ability to seek injunctions, damages, and civil penalties for violations.

Business and Industry

https://www.legis.ga.gov/legislation/70434