AB 493, as introduced, Medina. Insurance.
Existing law governs home protection contracts for the repair or replacement of a component, system, or appliance of a home. Existing law prohibits a person from issuing or offering to issue home protection contracts in this state unless the person holds a home protection company license issued by the Department of Insurance, except as specified. Existing law requires a home protection contract to specify, among other things, the service fee or fees, in any, to be charged for services performed under the contract.
This bill would prohibit a home protection contract, issued, delivered, amended, or renewed on or after January 1, 2016, from charging a service fee or fees if no repair is made.
Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 12765 is added to the Insurance Code,
For policies issued, delivered, amended, or renewed in
4this state on or after January 1, 2016, a home protection company
P2 1shall not charge a service fee if a contractholder requests services
2to be performed by the home protection company but no repair is