Bill > HB1168

This bill establishes a regulatory framework for "vehicle value protection agreements," which are defined as contracts offering a benefit to reduce a loan balance or help purchase a replacement vehicle after an adverse event, and clarifies that these agreements are not considered insurance. The bill specifies that the sale of a vehicle or the extension of credit cannot be made conditional on the purchase of such an agreement, and requires that the cost of the agreement be clearly itemized and not treated as interest or a finance charge. Providers must demonstrate financial responsibility through insurance, a reserve account, or a substantial net worth, and agreements must include clear disclosures about the provider, cost, cancellation rights, and claim procedures, though these disclosure requirements do not apply to commercial transactions. The Mississippi Commissioner of Insurance is granted authority to examine providers, enforce compliance, and impose penalties for violations, with the new regulations taking effect on July 1, 2026. The bill also incorporates and updates existing provisions related to "guaranteed asset protection waivers" (GAP waivers), which are similar agreements, ensuring consistency in definitions and regulations.

Business and Industry

https://billstatus.ls.state.ms.us/2026/pdf/history/HB/HB1168.xml