Bill > SB01425

This bill updates and expands regulations concerning motor vehicle extended warranties and vehicle theft protection product warranties. The bill broadens the definition of "extended warranty" to include specific protections such as tire and wheel damage from road hazards, paintless dent removal, windshield repair, key replacement, and lease-end damage coverage. It introduces a new category called "vehicle theft protection products" which are devices designed to prevent vehicle theft and include associated warranties. The legislation requires extended warranty providers to be financially backed by insurance or maintain adequate financial reserves, and mandates that warranty contracts include clear descriptions of coverage, limitations, service procedures, and cancellation rights. The bill also establishes new filing fees for extended warranty providers and vehicle theft protection product warrantors with the Insurance Commissioner, requiring them to pay $1,500 for various filings related to rate requests, mergers, acquisitions, or changes of control. Importantly, the bill clarifies that these warranty contracts do not constitute engaging in the insurance business, and is set to take effect on October 1, 2025.

Business and Industry

Insurance and Real Estate Committee (J)

https://www.cga.ct.gov/asp/cgabillstatus/cgabillstatus.asp?selBillType=Bill&bill_num=SB01425&which_year=2025