                                 CODE OF VIRGINIA

HOME SERVICE CONTRACTS NOT INSURANCE; EXEMPTIONS (§ 59.1-434.7)

A. Home service contracts are (i) not contracts of insurance in the Commonwealth
and (ii) not subject to regulation under Title 38.2.

B. Any provider that has a net worth, on a stand-alone basis or together with a
parent company, calculated in accordance with generally accepted accounting
principles or statutory accounting principles at the election of the provider,
in excess of $100 million shall be subject to neither (i) the provisions of this
chapter nor (ii) the provisions of Title 38.2.

C. Any matter subject to the insurance regulatory authority of the State
Corporation Commission pursuant to Title 38.2 shall not be subject to the
provisions of this chapter.

D. Providers that comply with this chapter shall not be subject to the
provisions of Title 38.2.

E. Employees of providers that comply with this chapter and licensed real estate
agents or other contractors operating under a written agreement with such
providers that market, sell, or offer to sell home service contracts on behalf
of the registered provider shall be subject to neither (i) the provisions of
this chapter nor (ii) the provisions of Title 38.2.

F. The provisions of this chapter shall not apply to:

   1. Any extended service contract providers offering extended service contracts
   on consumer products, as those terms are defined in &#xA7; 59.1-435, that are
   registered and regulated pursuant to Chapter 34 (&#xA7; 59.1-435 et seq.); or

   2. Any maintenance and service agreement (i) pertaining to a heating,
   ventilation, air conditioning, or cooling system entered into between a seller
   of petroleum heating oil, propane, or natural gas and the seller&#8217;s
   customer if the seller does not engage in selling home service contracts for
   property other than heating, ventilation, air conditioning, or cooling systems
   or (ii) entered into by a person who provides telecommunications services in
   the Commonwealth to which the service contract, guarantee or warranty relates.

HISTORY: 2017, c. 727.