North Carolina Passes Legislation to Clarify Applicability of Motor Vehicle Service Agreement Protections
On October 22, North Carolina Governor Pat McCrory signed into law North Carolina SB 195 to clarify the types of service agreements that come under the existing framework governing how motor vehicle service agreements are sold. The bill revises the existing statute to specifically describe a set of products considered to be motor vehicle service agreements and delegates to the Commissioner of Insurance power to define additional products consistent with the law. The bill also amends the statute to expressly carve out from the regulatory framework maintenance agreements offered by certain entities. Finally, the new law amends the statute to clarify that ancillary anti-theft protection program and ancillary anti-theft protection program warranty products are not considered contracts of insurance. The amendments are effective as of October 1, 2015.