Scope and purpose; exemptions

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RS 3161 - Scope and purpose; exemptions

A. The purposes of this Chapter are the following:

(1) To create a registration and assurance mechanism for motor vehicle service contract providers in this state.

(2) To encourage innovation in the marketing and development of more economical and effective means of providing services under motor vehicle service contracts while placing the risk of innovation on the providers rather than on consumers.

(3) To permit and encourage fair and effective competition among different systems of providing and paying for these services.

B. The following shall be exempt from this Chapter:

(1) Warranties as defined in this Chapter.

(2) Maintenance-only agreements as defined in this Chapter.

(3) Service contracts sold or offered for sale to persons other than consumers.

(4) Service contracts sold or offered for sale on a single item of property sold at the time of sale of the property or within a year of the date of sale.

(5) A vehicle mechanical breakdown insurance policy or vehicle component coverage contract offered by a vehicle mechanical breakdown insurer in compliance with the applicable provisions of Title 22 of the Louisiana Revised Statutes of 1950.

(6) Tire and wheel coverage sold by a retailer as a part of a service package in concert with the sale of one or more tires or one or more wheels in compliance with the applicable provisions of Title 22 of the Louisiana Revised Statutes of 1950.

C. The types of agreements referred to in Paragraphs (B)(1) through (4) of this Section are not insurance in this state and shall be exempt from any provision of the Louisiana Insurance Code.

Acts 2018, No. 592, §2, eff. Feb. 1, 2019.


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