AN ACT TO AMEND TITLE 18 OF THE DELAWARE CODE RELATED TO SERVICE CONTRACTS AND PRODUCT WARRANTIES.

Delaware is one of only a few states that does not provide statutory or regulatory authority regarding the regulation of service contracts and warranties. In some states, these products are regulated as insurance products. In other states, the Attorney General’s office retains oversight of these products. In Delaware, the regulation of these products is governed by a letter issued by the Department of Insurance in 1993 and Domestic/Foreign Insurers Bulletin No. 5 issued in 1997. This legislation essentially codifies the existing legal practice, and makes clear these products are not regulated as insurance products thus providing the Department of Justice with the authority to address legal issues pertaining to service contracts and product warranties.