Long (SB 135) Act No. 855
Prior law provided that a home service contract shall not be issued, sold, or offered for sale
unless the provider gives a receipt for or other written evidence of the purchase of a home
service contract and a copy of the home service contract within a reasonable period of time
from date of purchase.
New law retains prior law and adds the requirement for an annual financial statement,
submitted to the commissioner, showing the solvency of the provider.
New law requires the home service contract provider to provide the commissioner of
insurance, by March 1, 2016, a report documenting for calendar year 2015 the number of
home service contracts issued or sold with respect to residential property; the gross
consideration received; the number and dollar amount of claims paid, categorically by the
cost of repair or by the cost of replacement; and the number of claims denied for failure of
the service contract holder to receive prior approval for the repair or replacement.
Effective August 1, 2014.
(Amends R.S. 22:1806.3(A)(3); adds R.S. 22:1806.3(A)(4) and (5))