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Senate clears amendments on consumer service-contract regulation (S.B. 195)
Summary
Senators approved technical amendments to S.B. 195, which clarifies regulation of service contracts and defines preexisting conditions and consequential damage; sponsors said amendments were intended to address concerns from home-warranty providers and did not make substantive policy changes.
The Senate took up and advanced second substitute S.B. 195, a bill that revises the insurance code governing service contracts and manufacturers' warranties. Sponsors said the measure clarifies technical language on return of premiums and defines ‘‘preexisting conditions’’ for service contracts.
A sponsor explained that home-warranty stakeholders were concerned about language allowing exclusions for preexisting conditions. The adopted amendment permits exclusions only if they are explicitly spelled out in the contract (for example, excluding a water heater that is rusted out if that exclusion appears in the contract language). The sponsor described the change as a narrowly tailored clarification rather than a substantive policy shift.
When the question was called, the clerk reported the roll call for S.B. 195 as 24 ayes, zero nays; the measure was passed and sent to the House for further consideration.
Senators framed the change as providing consumer clarity and addressing industry concerns about contractual disclosures; no fiscal note or implementation detail was discussed on the floor.
