Iowa Governor Signs Service Contract Bill into Law

May 22, 2019

The Iowa governor has signed a bill into law that “modifies [the] provisions applicable to certain service contract providers regulated by the commissioner of insurance.”

The bill, S 619, adds a new definition for “motor vehicle service contract,” as follows:

“a contract or agreement sold for separate consideration for a specific duration that undertakes to perform the repair, replacement, or maintenance of a motor vehicle, or indemnification for such repair, replacement, or maintenance, for the operation or structural failure of a motor vehicle due to a defect in materials, workmanship, or normal wear and tear, with or without additional provisions for the incidental payment of indemnity under limited circumstances, including but not limited to motor vehicle towing, rental, emergency road service, and road hazard protection. Motor vehicle service contract also includes a contract or agreement sold for separate consideration for a specific duration that provides for any of the following services or productsThe repair or replacement of motor vehicle windshields that are damaged as a result of contact with road hazards.”

The bill was introduced on April 15 and referred to the Senate Ways and Means Committee. An amended version of the bill passed the Senate on April 22. It passed the House on April 23. The Iowa governor signed it into law on May 16.

Click here for the full text of S 619 as enacted into law.

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