Is a license required to sell extended warranty/service contracts?
Extended warranty contracts which provide an insurance component rather than service only are regulated through the Property and Casualty Division of the Connecticut Department of Insurance. According to the Conn. Gen. Stat. 42-260 extended warranties are defined as “a contract agreement to either perform or provide indemnification for the repair, replacement or maintenance of a product because of operational or structural failure of such product due to a defect in materials, skill or workmanship or normal wear and tear given for consideration over and above the lease or purchase price of a product” As of July 1, 2003, contracts for the repair, replacement or maintenance of automobiles are considered to be extended warranty contracts. The law does not apply to extended warranties through major credit cards, home warranty or home service warranties which are governed by Conn. Gen. Stat. 38a-320. Providers of extended warranty contracts must be insured through an extended warranty reimbu
