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Regular Session, 2010
HOUSE BILL NO. 338
BY REPRESENTATIVE MONICA
INSURANCE COMMISSIONER: Provides relative to regulation of home service contract
providers by the commissioner of insurance
AN ACT1
To amend and reenact R.S. 22:1806.2(7) and 1806.3(G) and to enact R.S. 22:1806.1(B)(4),2
relative to regulation of home service contract providers by the commissioner of3
insurance; to provide for definitions; to provide for exemptions; and to provide for4
related matters.5
Be it enacted by the Legislature of Louisiana:6
Section 1. R.S. 22:1806.2(7) and 1806.3(G) are hereby amended and reenacted and7
R.S. 22:1806.1(B)(4) is hereby enacted to read as follows: 8
§1806.1. Scope and purpose9
* * *10
B. The following shall be exempt from this Part:11
* * *12
(4) Contracts sold or offered for sale on a single new item of property at the13
time of the sale of the property or within one year of the date of the sale which14
guarantees the performance of the service, repair, replacement, or maintenance of the15
property or guarantees to indemnify for the service, repair, replacement, or16
maintenance of a single item of residential property.17
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§1806.2. Definitions1
As used in this Part:2
* * *3
(7) "Provider" means a person who administers, issues, makes, provides,4
sells, or offers to sell a home service contract or who is contractually obligated to5
provide service the services or to provide indemnification under a home service6
contract. such as sellers, administrators, and other intermediaries.7
* * *8
§1806.3. Requirements for doing business9
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G. Except for the registration requirements of this Section, providers and11
related home service contract sellers, administrators, and other persons marketing,12
selling, or offering to sell , administrators, and persons marketing, selling, or offering13
to sell home service contracts are exempt from any licensing requirements of this14
state and shall not be subject to other registration information or security15
requirements.16
* * *17
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
Monica HB No. 338
Abstract: Provides relative to regulation of home service contract providers by the
commissioner of insurance, including definitions and exemptions.
Present law generally requires home service contract providers to register with the
commissioner of insurance.
Proposed law changes such regulation by the commissioner, as follows:
(1)Present law specifically exempts the following from present law: warranties,
maintenance agreements, and service contracts sold or offered for sale to persons
other than consumers.
Proposed law additionally exempts contracts sold or offered for sale on a single new
item of property at the time of the sale of the property or within one year of the date
of the sale which guarantees the performance of the service, repair, replacement, or HLS 10RS-1313 ENGROSSED
HB NO. 338
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maintenance of the property or guarantees to indemnify for the service, repair,
replacement, or maintenance of a single item of residential property.
(2)Present law defines a "provider" as a person who administers, issues, makes,
provides, sells, or offers to sell a home service contract or who is contractually
obligated to provide service under a service contract such as sellers, administrators,
and other intermediaries.
Proposed law limits a "provider" to a person who is contractually obligated to
provide the services or to provide indemnification under a home service contract.
Also, specifies that except for the registration requirements of present law, providers,
administrators, and persons marketing, selling, or offering to sell home service
contracts are exempt from the requirements of the state.
(Amends R.S. 22:1806.2(7) and 1806.3(G); Adds R.S. 22:1806.1(B)(4))
Summary of Amendments Adopted by House
Committee Amendments Proposed by House Committee on Insurance to the original
bill.
1. Made technical changes.
2. Specified that the exemption in proposed law is applicable to contracts sold or
offered for sale on a single new item of property.
3. Removed a proposed change to the definition of home service contract which
would have included property installed at a specific residential address.
4. Specified that except for the registration requirements of present law, providers,
administrators, and persons marketing, selling, or offering to sell home service
contracts are exempt from the requirements of this state.