An Act
ENROLLED SENATE
BILL NO. 490 By: Quinn of the Senate
and
Hill of the House
An Act relating to the Oklahoma Home Service C ontract
Act; amending 36 O.S. 2011, Sections 6751, as amended
by Section 37, Chapter 150, O.S.L. 2012 and 6752 (36
O.S. Supp. 2020, Section 6751 ), which relate to
purpose of act and definitions; modifying purpose and
applicability of act to home warranties; modifying
definition; specifying that home service contract s
and home warranties are not insurance and not
regulated by Insurance Code; providing for
codification; and providing an effective date.
SUBJECT: Oklahoma Home Service C ontract Act
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 36 O.S. 2011, Section 6751, as
amended by Section 37, Chapter 150, O.S.L. 2012 (36 O.S. Supp. 2020,
Section 6751), is amended to read as follows:
Section 6751. A. The purpose of the Oklahoma Home Service
Contract Act is to create an indep endent legal framework w ithin
which home service contracts and home warranties are defined, may be
sold and are regulated in this state. The Oklahoma Home Service
Contract Act declares that home service contracts and home
warranties, as defined in Section 6752 of this title, are not
insurance and not otherwise subject to the Insurance Code. The
Oklahoma Home Service Contract Act requires simple registration,
ENR. S. B. NO. 490 Page 2
financial assurance options and enforcement by the Insurance
Commissioner. Proper registration un der the Oklahoma Home Se rvice
Contract Act exempts applicability under the Service Warranty Act,
which may regulate extended warranty, retail, automobile and
agreements not defined in the Oklahoma Home Service Contract Act.
Nothing in the Service Warranty Act is changed or amend ed by the
Oklahoma Home Service Contract Act.
B. The following items are exempt from the provisions of the
Oklahoma Home Service Contract Act:
1. Warranties as defined in Section 6752 of this title;
2. Maintenance agreements as defined in Section 6752 of this
title; and
3. Service contracts sold or offered for sale to persons other
than consumers, consumer product (extended warranty) service
contracts on new retail goods if made at the time of sale and motor
vehicle service contr acts, all of which m ay be separately regulated
elsewhere in the Oklahoma Statutes.
C. The types of agreements covered by the Oklahoma Home Service
Contract Act are not insurance and do not have to comply with any
other provision of the Insurance Code outs ide of the Oklahoma Home
Service Contract Act.
SECTION 2. AMENDATORY 36 O.S. 2011, Section 6752, is
amended to read as follows:
Section 6752. As used in the Oklahoma Home Service Contract
Act:
1. “Administrator” means the person who is responsible for the
administration of home service contracts or the home service
contracts plan, who may promote the contract under thei r own private
label or brand as long as the provider is clearly identified on the
contract, or who is responsibl e for any submission required by the
Oklahoma Home Service Contract Act ;
2. “Commissioner” means the Insurance Commissioner;
ENR. S. B. NO. 490 Page 3
3. “Consumer” means a natural person who buys other than for
purposes of resale any tangible personal property that is
distributed in commerce and that is normally used for personal,
family or household purposes and not for business or research
purposes;
4. “Maintenance agreement” means a contract of limited duration
that provides for scheduled maintenance only and does not include
repair or replacement;
5. “Person” means an individual, partnership, corporation,
incorporated or unincorporated association, joint stock comp any,
reciprocal, syndicate or any similar entity or combination of
entities acting in concert;
6. “Provider” means the person who is the contractually named
obligor to the home servi ce contract holder under the terms of the
service contract;
7. “Provider fee” means the consideration paid for a home
service contract;
8. “Reimbursement insurance policy ” means a policy of insurance
issued to a provider to either provide reimbursement t o the provider
under the terms of the insured home service contracts issu ed or sold
by the provider or, in the event of the provider ’s nonperformance,
to pay on behalf of the provider a ll covered contractual obligations
incurred by the provider under the t erms of the insured home service
contracts issued or sold by the provider ;
9. “Home service contract ” or “home warranty” means a contract
or agreement for a separately stated considera tion for a specific
duration to perform the service, repair, replacemen t or maintenance
of property or indemnification for service, repair, repl acement or
maintenance, for the operational or structural failure of any
residential property due to a defect in materials, workmanship,
inherent defect or normal wear and tear, with or without additional
provisions for incidental payment or indemnity unde r limited
circumstances. Home service contracts may provide for the service,
repair, replacement, or maintenanc e of property for damage resulting
from power surges or interruption an d accidental damage from
handling and may provide for leak or repair cove rage to house
ENR. S. B. NO. 490 Page 4
roofing systems. Home service contracts and home warranties are not
insurance in this state or ot herwise regulated under the Insurance
Code;
10. “Service contract hold er” or “contract holder” means a
person who is the purchaser or holder of a home service cont ract;
and
11. “Warranty” means a warranty made solely by the
manufacturer, importer or sell er of property or services, including
builders on new home construction , without consideration, that is
not negotiated or separated from the sale of the product and is
incidental to the sale of the product, that guarantees indemnity for
defective parts, mechanical or electrical breakdown, labor or other
remedial measures, suc h as repair or replacement of the property or
repetition of services.
SECTION 3. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 632.1 of Title 36, unless there
is created a duplication in numbering, reads as follows:
Home service contracts and home warranti es, as defined in
Section 6752 of Title 36 of the Oklahoma Statutes , are not insurance
in this state or otherwise regulated und er the Insurance Code.
SECTION 4. This act shall becom e effective November 1, 2021.
ENR. S. B. NO. 490 Page 5
Passed the Senate the 4th day of March, 2021.
Presiding Officer of the Senate
Passed the House of Representatives the 14th day of April, 2021.
Presiding Officer of the House
of Representatives
OFFICE OF THE GOVERNOR
Received by the Office of the Governor this _______ _____________
day of _________________ __, 20_______, at _______ o'clock _______ M.
By: _______________________________ __
Approved by the Governor of the State of Oklahoma this _________
day of _________________ __, 20_______, at _______ o'clock _______ M.
_________________________________
Governor of the State of Oklahoma
OFFICE OF THE SECRETARY OF STATE
Received by the Office of the Secretary of State this __________
day of __________________, 20 _______, at _______ o'clock _______ M.
By: _______________________________ __