85th Recap: Residential Service Contracts
H.B. 2279 - Relating to the regulation of a residential service contract
Residential service contracts provide coverage to homeowners for the repair or replacement costs of major systems and other components of a home. The residential service contract industry has evolved significantly since the Texas Real Estate Commission began regulating companies providing such services. H.B. 2279 seeks to update provisions of the Residential Service Company Act.
H.B. 2279 updates the current statute in several ways, including amending the form filing requirement so that forms not disapproved by TREC within 30 days are approved; stating the schedule of charges filed with TREC by RSCs backed by reimbursement insurance are filed for information only while RSCs backed by reserves must be approved; making clear that information submitted in connection with an examination of a RSC by TREC is exempt from public records disclosure; confirming that that an insurer may not cancel a reimbursement insurance policy without notifying TREC; and codifying existing regulations concerning captive insurance companies backing residential service company programs.
This bill was signed into law and will become effective on January 1, 2018.
This is one of TMHA's 85th Legislative Session Recap posts. The series includes these additional posts: