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General Assembly Substitute Bill No. 1425
January Session, 2025
AN ACT CONCERNING MOTOR VEHICLE PROTECTION PRODUCTS.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. Section 42-260 of the general statutes is repealed and the 1
following is substituted in lieu thereof (Effective October 1, 2025): 2
(a) As used in this section: 3
(1) "Extended warranty" means a contract or agreement to either 4
perform or provide indemnification for the repair, replacement or 5
maintenance of a product because of operational or structural failure of 6
such product due to a defect in materials, skill or workmanship or 7
normal wear and tear given for consideration over and above the lease 8
or purchase price of a product. "Extended warranty" includes, but is not 9
limited to: (A) The repair or replacement of tires or wheels on a motor 10
vehicle damaged as a result of coming into contact with road hazards, 11
including, but not limited to, pot holes, rocks, wood debris, metal parts, 12
glass, plastic, curbs or composite scraps; (B) the removal of dents, dings 13
or creases on a motor vehicle using the process of paintless dent removal 14
without (i) affecting the existing paint finish, (ii) replacing vehicle body 15
panels, (iii) sanding, (iv) bonding, or (v) painting; (C) the repair of chips 16
or cracks in, or the replacement of, a motor vehicle windshield as a result 17
of damage caused by such road hazards; (D) the replacement of a motor 18
vehicle key or key fob if such key or key fob becomes inoperable, or is 19 Substitute Bill No. 1425
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lost or stolen; or (E) in conjunction with a motor vehicle leased for 20
personal use, the repair, replacement or maintenance of property or 21
indemnification for repair, replacement or maintenance, due to excess 22
wear and use damage for items, including, but not limited to, tires, paint 23
cracks or chips, interior stains, rips or scratches, exterior dents or 24
scratches, windshield cracks or chips, missing interior or exterior parts 25
or excess mileage that result in a lease-end charge, provided any such 26
charge shall not exceed the purchase price of the motor vehicle. 27
"Extended warranty" does not include portable electronics insurance, as 28
defined in section 38a-397. 29
(2) "Extended warranty provider" means a person who issues, makes, 30
provides or offers to provide an extended warranty to a buyer and who 31
is contractually obligated to provide service under such extended 32
warranty, excluding a retail seller of an extended warranty if such seller: 33
(A) Is the manufacturer of the product covered under the extended 34
warranty, or a subsidiary of the manufacturer; (B) sells or offers an 35
extended warranty for a product obligating the manufacturer, a 36
subsidiary of the manufacturer, a distributor or an importer to provide 37
the service or indemnification arising under the extended warranty; or 38
(C) performs at least ninety per cent of the repair service provided to 39
buyers pursuant to extended warranties purchased from such seller. 40
(3) "Buyer" means a person who purchases an extended warranty 41
from an extended warranty provider. 42
(4) "Extended warranty reimbursement insurance policy" means a 43
policy of insurance providing coverage for all obligations and liabilities 44
incurred by an extended warranty provider under the terms of the 45
extended warranty sold to a buyer by such provider. 46
(5) "Vehicle theft protection product" means any device or system 47
that (A) is installed on or applied to a covered motor vehicle, (B) is 48
designed to prevent loss or damage to such covered motor vehicle from 49
theft, and (C) includes a vehicle theft protection product warranty. 50
(6) "Vehicle theft protection product warranty" means a contract or 51 Substitute Bill No. 1425
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agreement obligating a warrantor to pay to, or on behalf of, the vehicle 52
theft protection product warranty holder specified incidental costs as a 53
result of the failure of such vehicle theft protection product to perform 54
pursuant to the terms of such contract or agreement. 55
(b) An extended warranty shall obligate the extended warranty 56
provider to supply to the buyer all services and functional parts that 57
may be necessary to repair the product for the duration of the extended 58
warranty without additional charge, except as otherwise expressly 59
provided. 60
(c) An extended warranty shall contain all of the following: 61
(1) A clear description and identification of the product; 62
(2) The date when the extended warranty commences and its 63
duration, and, if the extended warranty is for less than one year, the 64
extended warranty shall include a provision for the automatic extension 65
of the extended warranty while the product is in the custody of the 66
extended warranty provider for repair under such warranty; 67
(3) A description of the limits on transfer or assignment of the 68
extended warranty if the enforceability of an extended warranty is 69
limited to the original buyer or is limited to persons other than every 70
consumer owner of the covered product during the term of the extended 71
warranty; 72
(4) A statement of the obligation of the extended warranty provider 73
including statements of: (A) Any services, parts, components, defects, 74
malfunctions, conditions, repairs or remedies that are excluded from the 75
scope of the extended warranty; (B) any limits on the obligations of the 76
extended warranty provider; (C) any additional services which the 77
extended warranty provider will supply; (D) whether the buyer has the 78
responsibility of any other obligations and, if so, the nature and 79
frequency of such obligations, and the consequences of any 80
noncompliance; 81 Substitute Bill No. 1425
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(5) A step-by-step explanation of the procedure which the buyer shall 82
follow in order to obtain performance of any obligation under the 83
extended warranty including: (A) The full legal and business name of 84
the extended warranty provider; (B) the mailing address of the extended 85
warranty provider; (C) the persons or class of persons that are 86
authorized to perform service; (D) the name or title and address of any 87
agent, employee or department of the extended warranty provider that 88
is responsible for the performance of any obligations; (E) the method of 89
giving notice to the extended warranty provider of the need for service; 90
(F) whether in-home service is provided or, if not, whether the costs of 91
transporting the product for service or repairs will be paid by the 92
extended warranty provider; (G) if the product must be transported to 93
the extended warranty provider, either the place where the product may 94
be delivered for service or repairs or a toll-free telephone number which 95
the buyer may call to obtain that information; (H) all other steps which 96
the buyer must take to obtain service; and (I) all fees, charges and other 97
costs that the buyer must pay to obtain service; 98
(6) A description of the services the extended warranty provider will 99
supply under the extended warranty; and 100
(7) A statement of a right to cancel the warranty if the buyer returns 101
the product or the product is sold, lost, stolen or destroyed, or a 102
statement that there is no right to cancel. 103
(d) (1) An extended warranty shall not be issued, sold or offered for 104
sale unless the extended warranty provider is insured under an 105
extended warranty reimbursement insurance policy issued by an 106
insurer authorized to do business in this state or the extended warranty 107
provider can demonstrate that reserves for claims contained in the 108
provider's financial statements are not in excess of one-half of a 109
provider's audited net worth. If such reserves are in excess of one-half 110
of a provider's net worth, the reserves shall be held in trust by an 111
independent trustee and certified annually as adequate by an actuary. 112
(2) The extended warranty reimbursement insurance policy shall 113 Substitute Bill No. 1425
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cover the obligations under the extended warranty sold by the extended 114
warranty provider during the period of time that such provider's 115
insurance policy is in force. 116
(3) An insurer authorized to issue an extended warranty 117
reimbursement insurance policy in this state shall, at the time the policy 118
is filed with the Insurance Commissioner as set forth in subsection (c) of 119
section 38a-676 and continuously thereafter: (A) Maintain a surplus as 120
to policyholders and paid-in capital of not less than fifteen million 121
dollars; (B) demonstrate to the satisfaction of said commissioner that the 122
company maintains a ratio of net written premiums, wherever written, 123
to a surplus as to policyholders and paid-in capital of not greater than 124
three to one; and (C) annually file with the Insurance Commissioner 125
copies of such insurer's audited financial statements, its National 126
Association of Insurance Commissioners' Annual Statement and the 127
actuarial certification required by and filed in such insurer's state of 128
domicile. 129
(e) An extended warranty provider shall submit to the Insurance 130
Commissioner: (1) A copy of the extended warranty form issued by said 131
provider; and (2) a copy of said provider's extended warranty 132
reimbursement insurance policy form issued by an insurer authorized 133
to do business in this state or a certification by a certified public 134
accountant attesting to the adequacy of the reserves for claims reported 135
on said provider's financial statements or contained in said provider's 136
trust account. 137
(f) (1) An extended warranty shall contain the name and address of 138
the insurers insuring the obligations and liabilities of such warranty and 139
instructions on how the buyer, or successor to the buyer's rights, of the 140
product may file a claim with the insurer if the extended warranty 141
provider fails to perform according to the terms of the extended 142
warranty. 143
(2) An insurer of an extended warranty shall not refuse to renew any 144
policy unless such insurer or its agent shall send, by registered or 145 Substitute Bill No. 1425
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certified mail or by mail evidenced by a certificate of mailing or delivery 146
to the Insurance Commissioner, at least sixty days' advance notice of its 147
intention not to renew. The notice of intent not to renew shall state or be 148
accompanied by a statement specifying the reason for such nonrenewal. 149
(g) The Insurance Commissioner shall develop regulations, in 150
accordance with chapter 54, implementing an arbitration process to 151
settle disputes arising from extended warranty contracts between 152
extended warranty providers and buyers. 153
(h) Nothing in this section shall apply to a home warranty contract or 154
home warranty service agreement, as defined in section 38a-320, or 155
regulated utilities. 156
(i) No contract or agreement providing any extended warranty or 157
vehicle theft protection product warranty shall constitute engaging in 158
the business of insurance in this state. 159
Sec. 2. Subsection (a) of section 38a-11 of the general statutes is 160
repealed and the following is substituted in lieu thereof (Effective October 161
1, 2025): 162
(a) The commissioner shall demand and receive the following fees: 163
(1) For the annual fee for each license issued to a domestic insurance 164
company, two hundred dollars; (2) for receiving and filing annual 165
reports of domestic insurance companies, fifty dollars; (3) for filing all 166
documents prerequisite to the issuance of a license to an insurance 167
company, two hundred twenty dollars, except that the fee for such 168
filings by any health care center, as defined in section 38a-175, shall be 169
one thousand three hundred fifty dollars; (4) for filing any additional 170
paper required by law, thirty dollars; (5) for each certificate of valuation, 171
organization, reciprocity or compliance, forty dollars; (6) for each 172
certified copy of a license to a company, forty dollars; (7) for each 173
certified copy of a report or certificate of condition of a company to be 174
filed in any other state, forty dollars; (8) for amending a certificate of 175
authority, two hundred dollars; (9) for each license issued to a rating 176
organization, two hundred dollars. In addition, insurance companies 177 Substitute Bill No. 1425
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shall pay any fees imposed under section 12-211; (10) a filing fee of fifty 178
dollars for each initial application for a license made pursuant to section 179
38a-769; (11) with respect to insurance agents' appointments: (A) A 180
filing fee of fifty dollars for each request for any agent appointment, 181
except that no filing fee shall be payable for a request for agent 182
appointment by an insurance company domiciled in a state or foreign 183
country which does not require any filing fee for a request for agent 184
appointment for a Connecticut insurance company; (B) a fee of one 185
hundred dollars for each appointment issued to an agent of a domestic 186
insurance company or for each appointment continued; and (C) a fee of 187
eighty dollars for each appointment issued to an agent of any other 188
insurance company or for each appointment continued, except that (i) 189
no fee shall be payable for an appointment issued to an agent of an 190
insurance company domiciled in a state or foreign country which does 191
not require any fee for an appointment issued to an agent of a 192
Connecticut insurance company, and (ii) the fee shall be twenty dollars 193
for each appointment issued or continued to an agent of an insurance 194
company domiciled in a state or foreign country with a premium tax 195
rate below Connecticut's premium tax rate; (12) with respect to 196
insurance producers: (A) An examination fee of fifteen dollars for each 197
examination taken, except when a testing service is used, the testing 198
service shall pay a fee of fifteen dollars to the commissioner for each 199
examination taken by an applicant; (B) a fee of eighty dollars for each 200
license issued; (C) a fee of eighty dollars per year, or any portion thereof, 201
for each license renewed; and (D) a fee of eighty dollars for any license 202
renewed under the transitional process established in section 38a-784; 203
(13) with respect to public adjusters: (A) An examination fee of fifteen 204
dollars for each examination taken, except when a testing service is 205
used, the testing service shall pay a fee of fifteen dollars to the 206
commissioner for each examination taken by an applicant; and (B) a fee 207
of two hundred fifty dollars for each license issued or renewed; (14) with 208
respect to casualty claims adjusters: (A) An examination fee of twenty 209
dollars for each examination taken, except when a testing service is 210
used, the testing service shall pay a fee of twenty dollars to the 211
commissioner for each examination taken by an applicant; (B) a fee of 212 Substitute Bill No. 1425
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eighty dollars for each license issued or renewed; and (C) the expense of 213
any examination administered outside the state shall be the 214
responsibility of the entity making the request and such entity shall pay 215
to the commissioner two hundred dollars for such examination and the 216
actual traveling expenses of the examination administrator to 217
administer such examination; (15) with respect to motor vehicle 218
physical damage appraisers: (A) An examination fee of eighty dollars 219
for each examination taken, except when a testing service is used, the 220
testing service shall pay a fee of eighty dollars to the commissioner for 221
each examination taken by an applicant; (B) a fee of eighty dollars for 222
each license issued or renewed; and (C) the expense of any examination 223
administered outside the state shall be the responsibility of the entity 224
making the request and such entity shall pay to the commissioner two 225
hundred dollars for such examination and the actual traveling expenses 226
of the examination administrator to administer such examination; (16) 227
with respect to certified insurance consultants: (A) An examination fee 228
of twenty-six dollars for each examination taken, except when a testing 229
service is used, the testing service shall pay a fee of twenty-six dollars to 230
the commissioner for each examination taken by an applicant; (B) a fee 231
of two hundred fifty dollars for each license issued; and (C) a fee of two 232
hundred fifty dollars for each license renewed; (17) with respect to 233
surplus lines brokers: (A) An examination fee of twenty dollars for each 234
examination taken, except when a testing service is used, the testing 235
service shall pay a fee of twenty dollars to the commissioner for each 236
examination taken by an applicant; and (B) a fee of six hundred twenty-237
five dollars for each license issued or renewed; (18) with respect to 238
fraternal agents, a fee of eighty dollars for each license issued or 239
renewed; (19) a fee of twenty-six dollars for each license certificate 240
requested, whether or not a license has been issued; (20) with respect to 241
domestic and foreign benefit societies shall pay: (A) For service of 242
process, fifty dollars for each person or insurer to be served; (B) for filing 243
a certified copy of its charter or articles of association, fifteen dollars; (C) 244
for filing an annual statement or report, twenty dollars; and (D) for filing 245
any additional paper required by law, fifteen dollars; (21) with respect 246
to foreign benefit societies: (A) For each certificate of organization or 247 Substitute Bill No. 1425
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compliance, fifteen dollars; (B) for each certified copy of permit, fifteen 248
dollars; and (C) for each copy of a report or certificate of condition of a 249
society to be filed in any other state, fifteen dollars; (22) with respect to 250
reinsurance intermediaries, a fee of six hundred twenty-five dollars for 251
each license issued or renewed; (23) with respect to life settlement 252
providers: (A) A filing fee of twenty-six dollars for each initial 253
application for a license made pursuant to section 38a-465a; and (B) a 254
fee of forty dollars for each license issued or renewed; (24) with respect 255
to life settlement brokers: (A) A filing fee of twenty-six dollars for each 256
initial application for a license made pursuant to section 38a-465a; and 257
(B) a fee of forty dollars for each license issued or renewed; (25) with 258
respect to preferred provider networks, a fee of two thousand seven 259
hundred fifty dollars for each license issued or renewed; (26) with 260
respect to rental companies, as defined in section 38a-799, a fee of eighty 261
dollars for each permit issued or renewed; (27) with respect to medical 262
discount plan organizations licensed under section 38a-479rr, a fee of six 263
hundred twenty-five dollars for each license issued or renewed; (28) 264
with respect to pharmacy benefits managers, an application fee of one 265
hundred dollars for each registration issued or renewed; (29) with 266
respect to captive insurance companies, as defined in section 38a-91aa, 267
a fee of three hundred seventy-five dollars for each license issued or 268
renewed; (30) with respect to each duplicate license issued a fee of fifty 269
dollars for each license issued; (31) with respect to surety bail bond 270
agents, as defined in section 38a-660, (A) a filing fee of one hundred fifty 271
dollars for each initial application for a license, and (B) a fee of one 272
hundred dollars for each license issued or renewed; (32) with respect to 273
third-party administrators, as defined in section 38a-720, (A) a fee of five 274
hundred dollars for each license issued, and (B) a fee of four hundred 275
fifty dollars for each license renewed; (33) with respect to portable 276
electronics insurance licenses under section 38a-397, (A) a filing fee of 277
one hundred dollars for each initial application for a license, (B) a fee of 278
five hundred dollars for each license issued, and (C) a fee of four 279
hundred fifty dollars for each license renewed; (34) with respect to 280
limited lines travel insurance producer licenses under section 38a-398, 281
(A) a filing fee of one hundred dollars for each initial application for a 282 Substitute Bill No. 1425
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license, (B) a fee of six hundred fifty dollars for each license issued, and 283
(C) a fee of six hundred fifty dollars for each license renewed; (35) with 284
respect to certified reinsurers, as certified by the commissioner pursuant 285
to regulations adopted pursuant to section 38a-85, a fee of two thousand 286
dollars for each certificate issued and renewed; [and] (36) with respect 287
to reciprocal jurisdiction reinsurers, as defined in regulations adopted 288
pursuant to section 38a-85, a fee of two thousand dollars for each 289
certificate issued and renewed; (37) with respect to extended warranty 290
providers, as defined in section 42-260, as amended by this act, a fee of 291
one thousand five hundred dollars when filing (A) a rate request with a 292
filing for any merger, acquisition or change of control, (B) a rate request, 293
or (C) for any merger, acquisition or change of control; and (38) with 294
respect to warrantors of vehicle theft protection products, as defined in 295
section 42-260, as amended by this act, a fee of one thousand five 296
hundred dollars when filing (A) a rate request with a filing for any 297
merger, acquisition or change of control, (B) a rate request, or (C) for any 298
merger, acquisition or change of control. 299
This act shall take effect as follows and shall amend the following
sections:
Section 1 October 1, 2025 42-260
Sec. 2 October 1, 2025 38a-11(a)
INS Joint Favorable Subst.