Minnesota Resources
Summary
SCIC style model law adopted June, 2005, effective January 1, 2006.
A May 9, 1978 letter from the Department of Commerce (Insurance Department) expressed the opinion that home service contracts are not insurance. It was too old to be relied upon. A private class action litigation [Simmons v. Edina Realty, filed Fall of 2002] raised the issue of whether service contracts are insurance. The litigation has since settled but caught significant industry and regulatory attention. A statutory enactment was needed. The law now requires annual registration, financial assurance and consumer disclosure. As with other "retail goods" models, it allows an exemption for property having a value under $250; specifically allows for risk retention groups to provide service contract reimbursement coverage; and exempts public utilities and technology system contractors among others. These exemptions are not generally favored by the NHSCA. A careful review of this unique law is recommended to all membersStatutes
ARTICLE 5 REGULATION OF SERVICE CONTRACTS
Direct link to state law:
https://www.revisor.leg.state.mn.us/statutes/?id=59B&year=2007
REGULATIONS
None at this time
