HB 1977 -- Missouri Vehicle Protection Product Act

Sponsor:  Faith

This bill establishes the Missouri Vehicle Protection Product Act
regarding any person selling or offering a vehicle protection
warranty agreement.  In its main provisions, the bill:

(1)  Requires a vehicle protection product warrantor to annually
register with the Department of Insurance, Financial
Institutions, and Professional Registration and to keep accurate
accounts, books, and records concerning transactions regulated by
the act;

(2)  Prohibits a vehicle protection product warrantor from using
in its name, contracts, or literature the words "insurance,"
"casualty," "surety," or "mutual" unless it is licensed as an
insurance company;

(3)  Requires every vehicle protection product warranty to be
written in clear, understandable language and specifies the
requirements of the warranty;

(4)  Prohibits a person from selling or offering for sale a
vehicle protection product warranty unless it clearly states the
terms and conditions governing the cancellation of the sale and
warranty; and

(5)  Prohibits any person from selling or offering for sale any
vehicle protection product unless the warrantor acquires
insurance under a warranty reimbursement insurance policy or
maintains a net worth or stockholder's equity of $50 million.

The bill becomes effective January 1, 2009.

Missouri House of Representatives
94th General Assembly, 2nd Regular Session
Last Updated October 15, 2008 at 3:11 pm