Rhode Island Service Contract Bill Passes Senate, House

June 26, 2019

A Rhode Island bill that amends the “general regulatory provisions [for] service contracts” has passed both the state‚Äôs House and Senate.

The bill, S 458, defines “service contract” as “a contract or agreement for a separately stated consideration for any duration to perform the repair, replacement or maintenance of a consumer product or indemnification for the same, for the operational or structural failure of a consumer product due to a defect in materials, workmanship, accidental damage from handling, or normal wear and tear, with or without additional provisions for incidental payment of indemnity under limited circumstances, including, but not limited to, towing, rental and emergency road service and road hazard protection. Service contracts may provide for the repair, replacement, or maintenance of a consumer product for damage resulting from power surges or interruption.”

The bill adds, “Service contract also includes a contract or agreement sold for a separately stated consideration for a specific duration that provides for any of the following … [including] the repair of chips or cracks in or the replacement of motor vehicle windshields as a result of damage caused by road hazards.”

The bill was introduced on February 27 and referred to the Senate Judiciary Committee. It passed the Senate on June 13 and the House on June 20.

Click here for the full text of S 458.

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