Bill > S0496

This bill allows for the electronic transmission of service agreements and home warranties, meaning that sending these documents digitally will be considered official delivery to the customer, provided the customer is informed they can still request a paper copy and is given the option to do so. It also revises the financial requirements for warranty associations, specifically allowing them to exceed certain limits on premiums relative to their net assets if they maintain a minimum of $750,000 in net assets and utilize a contractual liability insurance policy that meets new, more specific criteria regarding the insurer's financial strength and coverage, including reimbursement for 100% of claims liability. Additionally, the bill clarifies that these contractual liability insurance policies must be issued by insurers with substantial policyholder surplus, at least $100 million or $200 million depending on the policy type, and that the insurer must be rated "A" or higher by A.M. Best Company or an equivalent rating service.