ARIZONA HOUSE OF REPRESENTATIVES Fifty-fifth Legislature First Regular Session
	House: COM DPA/SE 9-0-0-1 | 3^rd Read 59-0-1-0 Senate: FIN DP 7-0-3-0 | 3^rd Read 29-0-1-0

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HB 2443: certificate of election; technical correction

NOW: service contracts; preexisting conditions

Sponsor:  Representative Nutt, LD 14

Transmitted to the Governor

Overview

Modifies certain service contract disclosure requirements relating to preexisting conditions.

History

Service contracts are defined as agreements for the maintenance, repair or replacement of a consumer product or structural component of a residential property. To offer service contracts, a service company must be issued a permit by The Department of Insurance and Financial Institutions (DIFI), but is exempt from DIFI licensure requirements (A.R.S. § 20-1095.01).

Senate Bill 1049 (2021), as signed by the governor, removed the requirement that a service contract disclose that it is prohibited from excluding preexisting conditions if such conditions were known or should reasonably have been known by the service company.  Additionally, the bill established a requirement that the service contract disclose that it may exclude preexisting conditions only if the conditions were either known or would have been known by visually inspecting, operating or testing the covered property. Further, required services contracts to disclose whether the contracts cover or exclude preexisting conditions.

Provisions

1. Removes the requirement that a service contract disclose that it may exclude preexisting conditions only if the conditions were either known or would have been known by visually inspecting, operating or testing the covered property. (Sec. 1)

2. Clarifies a service contract, as part of the disclosure requirement, must clearly indicate whether preexisting conditions are covered or excluded under the terms of the service contract. (Sec. 1)

3. Specifies a service company may continue to use any service contract form approved by DIFI before the effective date of this act, unless and until the company submits a new service contract form for approval after the effective date of this act. (Sec. 2)

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7.                   HB 2443

8. Initials PRB           Page 0 Transmitted

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