Newsline

Insurance Regulation May Affect Contractors

February 2, 2001
/ Print / Reprints /
ShareMore
/ Text Size+
Maryland hvac contractors who offer service contracts may need added insurance to cover those contracts.

The Maryland Alliance for Fair Competition (MAFC) announced that legislation will be introduced in the state’s General Assembly to regulate service contracts. This bill would require all contractors who sell residential service contracts to do one of the following:

  • Insure all service contracts under a reimbursement insurance policy issued by an insurer approved by the Maryland Insurance Administration;
  • Maintain a funded reserve of not less than 40% of the sold contracts in trust or a financial security deposit of 5% of proceeds from sold contracts, but not less than $25,000, with the Dept. of Labor, Licensing, and Regulation (DLLR); or
  • Maintain a net worth of $100 million of stockholder’s equity (equity subject to DLLR review). According to the MACF, the bill is an outgrowth of model legislation developed two years ago by the National Association of Insurance Commissioners. Similar legislation has been enacted in Alabama, Illinois, Nevada, New York, Texas, Vermont, Washington, and Wyoming.
  • For more information, contact MAFC at 410-560-3576.

    Publication date: 02/05/2001

    Did you enjoy this article? Click here to subscribe to The NEWS Magazine

    Recent Articles by Paula Liegl

    You must login or register in order to post a comment.

    Multimedia

    Videos

    Image Galleries

    2014 MCAA Annual Convention

    Scenes from the 2014 MCAA Annual Convention in Scottsdale, Ariz.

    Podcasts

    NEWSmakers: Julian Scadden

    Training is an ongoing process. Julian will discuss how you can generate maximum return on time and energy invested training by following a three part process. Listen to this podcast to get expert tips on training, tracking and follow up. 

    More Podcasts

    THE MAGAZINE

    ACHRNEWS

    NEWS 04-14-14 cover

    2014 April 14

    Check out the weekly edition of The NEWS today!

    Table Of Contents Subscribe

    SERVICE CALLS POLL

    Which statement on service calls best applies to your business?
    View Results Poll Archive

    HVACR INDUSTRY STORE

    plumbing-hvac.gif
    2014 National Plumbing & HVAC Estimator

    Every plumbing and HVAC estimator can use the cost estimates in this practical manual!

    More Products

    Clear Seas Research

     

    Clear Seas ResearchWith access to over one million professionals and more than 60 industry-specific publications, Clear Seas Research offers relevant insights from those who know your industry best. Let us customize a market research solution that exceeds your marketing goals.

    DON'T MISS A THING

    Magazine image
     
    Register today for complete access to ACHRNews.com. Get full access to the latest features, Extra Edition, and more.

    STAY CONNECTED

    facebook icontwitter iconyoutube iconLinkedIn i con