HB 2052 - DIGEST

(DIGEST AS ENACTED)

     Finds that increasing numbers of businesses are selling service contracts for repair, replacement, and maintenance of appliances, computers, electronic equipment, and other consumer products.  There are risks that contract obligors will close or otherwise be unable to fulfill their contract obligations that could result in unnecessary and preventable losses to citizens of this state.

     Declares that it is necessary to establish standards that will safeguard the public from possible losses arising from the cessation of business of service contract obligors or the mismanagement of funds paid for service contracts.  The purpose of this act is to create a legal framework within which service contracts may be sold in this state and set forth requirements for conducting a service contract business.