Summary
Legislation was enacted in 2010 that provides a regulatory framework for the offering of service contracts in the Commonwealth. While the 2010 law regulates the offering of service contracts covering homes and consumer products, it expressly exempted service contracts covering motor vehicles. This legislation amends the regulatory framework that was adopted by the Legislature to add service contracts covering motor vehicles to the products covered by it in order to provide a clear statement as to how service contracts covering motor vehicles can be sold in the Commonwealth. In addition, it would ensure that consumers purchasing motor vehicle service contracts are protected by requiring the entities providing them to comply with the requirements, such as cancellation rights and providers financial stability requirements, made applicable to service contracts by the 2010 law.