Relating to residential and motor vehicle service contracts and licenses

This bill relates to residential and motor vehicle service contracts and licenses. Under current law, an application for renewal of a service company license requires a copy of each motor vehicle service contract form and each residential service contract form to be used or issued in this state, if applicable. Under the bill, an application for renewal of a service company license requires a list of each service contract form the service company continues to use and issue in the state, including the service contract form name, number, and the date the form was last revised. Current law requires an application for renewal of a service company license be accompanied by a fee in the amount of $35 for each motor vehicle service contract form submitted with the renewal application. The bill requires an application for renewal of a service company license be accompanied by a fee in the amount of $35 for each new motor vehicle service contract form filed with the commissioner since the license was last issued, and for each motor vehicle service contract form the service company continues to use and issue in the state. Under the bill, a service contract shall not be issued, sold, or offered for sale in the state unless the service company files the service contract form with the commissioner. A service company shall notify the commissioner of any material changes to a service contract form that has been filed prior to using the service contract. The bill requires a service company that issues, sells, or offers for sale a service contract in the state to accept cancellations of a service contract from a contract holder by telephone, electronic mail, mail, or any other cost-effective and accessible method of communication.