A new law that went into effect Jan. 1, 2007 requires that all vehicle service contract administrators must register with the Missouri Department of Insurance, Financial Institutions & Professional Registration by Feb. 1, 2007, in order to do business with Missouri residents.
Typically, consumers purchase vehicle service contracts or warranties from companies to make sure the repair, replacement or maintenance of their vehicle due to defects or normal wear and tear will be covered by the company for a specific period of time.
The new laws and regulations establish financial requirements to ensure the faithful performance of these contracts, provide enforcement authority for the department and set standards for the use of terms and conditions set out in these contracts and their advertisements.
According the Missouri Attorney General’s Office, 122 complaints were made against vehicle service contractors in 2006.
“Implementing this law will help consumers better understand these products,” Insurance Director Doug Ommen said. “We want consumers to receive what they pay for when purchasing these contracts. This new law gives the department authority to prohibit service contractors from selling or offering products that mislead consumers.”
For questions about registering with the department, contact Cindy Monroe or Joe Haverstick at 573-751-4362.
Source: Missouri Department of Insurance, Financial Institutions and Professional Registration
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