ORS 646A.154
Service contract defined

  • registration
  • proof of financial stability
  • bond
  • action
  • rules
  • applicability of Insurance Code

(1)

Intentionally left blank —Ed.

(a)

For the purposes of this section, a service contract is a contract or agreement to perform or indemnify for a specific duration the repair, replacement or maintenance of property for operational or structural failure that results from a defect in materials, workmanship or normal wear and tear, with or without an additional incidental provision to pay indemnity under limited circumstances, including but not limited to rental and emergency road service. A service contract may also provide for:

(A)

Repairing, replacing or maintaining property for damage that results from lightning, power surges or accidental damage from handling;

(B)

Repairing or replacing tires or wheels on a motor vehicle damaged as a result of contacting a road hazard;

(C)

Removing dents, dings, creases or other damage on a motor vehicle that a process of paintless dent removal can repair without affecting an existing paint finish or replacing vehicle body panels, sanding, bonding or repainting;

(D)

Repairing chips or cracks in motor vehicle windshields or replacing motor vehicle windshields because of damage that results from road hazards;

(E)

Replacing motor vehicle keys or key fobs that become inoperable or that are lost or stolen;

(F)

Paying specified incidental costs that result from the failure of a vehicle protection product, as defined in ORS 646A.430 (Definitions for ORS 646A.430 to 646A.450), to perform according to the specifications for the vehicle protection product; and

(G)

Other services the Director of the Department of Consumer and Business Services specifies by rule, to the extent that the services are similar to services described in this paragraph.

(b)

For the purposes of this section, a service contract does not include coverage for repairing damage to or replacing components of a motor vehicle’s interior or exterior paint or finish unless the service contract provides the services described in this paragraph in connection with the sale of a vehicle protection product, as defined in ORS 646A.430 (Definitions for ORS 646A.430 to 646A.450).

(c)

Consideration for a service contract must be stated separately from the price of the consumer product.

(d)

For purposes of this section, a service contract does not include insurance policies that insurers issue under the Insurance Code or maintenance agreements.

(2)

An obligor may not issue, sell or offer for sale a service contract in this state unless the obligor has complied with the provisions of this section and ORS 646A.156 (Required contents of service contracts) and 646A.158 (Prohibited conduct).

(3)

All obligors of service contracts issued, sold or covering property located in this state shall file a registration with the Department of Consumer and Business Services on a form, at a fee and at a frequency that the director specifies under ORS 646A.168 (Assessment fee).

(4)

An obligor shall keep accurate accounts, books and records concerning transactions that involve service contracts.

(5)

Except as provided in subsection (6) of this section, to ensure the faithful performance of an obligor’s obligations to the obligor’s contract holders, each obligor shall provide the director with one of the following as proof of financial stability:

(a)

A copy of the obligor’s most recent Form 10-K that the obligor or the obligor’s parent company, if the obligor consolidates financial statements with a parent company, filed with the Securities and Exchange Commission. A Form 10-K that the obligor or the obligor’s parent company filed within the last calendar year must show that the obligor or the obligor’s parent company has a net worth of at least $100 million. If the obligor’s parent company files the Form 10-K to meet the obligor’s financial stability requirement, the parent company shall agree to guarantee the obligations the obligor has in service contracts the obligor sells in this state.

(b)

Evidence of a reimbursement insurance policy described in ORS 742.390 (Reimbursement insurance policy) that an authorized insurer issues to the obligor and that insures all service contracts the obligor sells.

(6)

Intentionally left blank —Ed.

(a)

An obligor of a home service agreement as defined in ORS 731.164 (“Home protection insurance,” “home protection insurer.”) shall file with the director a surety bond executed to the State of Oregon in the sum of $25,000. The surety bond must be issued by a surety company authorized to do business in this state. An obligor of a home service agreement does not need to file proof of financial stability under subsection (5) of this section.

(b)

The surety bond described in paragraph (a) of this subsection must be issued on the condition that the obligor comply with all provisions of ORS 646A.150 (Applicability of ORS 646A.150 to 646A.172) to 646A.172 (Rules) and fully perform on all contracts or agreements into which the obligor enters.

(c)

The surety bond must be continuous until canceled and must remain in full force and unimpaired at all times to comply with this section. The surety shall give the director at least 30 days’ written notice by registered or certified mail before the surety cancels or terminates the surety’s liability under the bond.

(d)

Any person who suffers damage as a result of a violation of any provision of ORS 646A.150 (Applicability of ORS 646A.150 to 646A.172) to 646A.172 (Rules) or any rule the director adopts pursuant to ORS 646A.150 (Applicability of ORS 646A.150 to 646A.172) to 646A.172 (Rules) has a right of action under the bond. The state or a person with a right of action may bring an action under the bond by filing a complaint in a court of competent jurisdiction not later than one year after the surety bond is canceled or terminated. The court may award the prevailing plaintiff reasonable attorney fees and costs in an action under the bond.

(e)

The aggregate liability of the surety may not exceed the principal sum of the bond.

(7)

Filing requirements are as follows:

(a)

The obligor shall file with the director proof of financial stability or a surety bond as required by subsection (5) or (6) of this section.

(b)

The director by rule may specify the procedure for filing the proof of financial stability or the surety bond.

(c)

A person may not file or cause to be filed with the director any article, certificate, report, statement, application or any other information required or permitted to be filed under this subsection that the person knows is false or misleading in any material respect.

(8)

Service contract sellers and employees of service contract sellers that market, sell or offer to sell service contracts for obligors who comply with this section and ORS 646A.156 (Required contents of service contracts) and 646A.158 (Prohibited conduct) are exempt from the requirements of the Insurance Code including, but not limited to, the requirement to belong to the Oregon Insurance Guaranty Association.

(9)

Obligors that comply with ORS 646A.156 (Required contents of service contracts) and 646A.158 (Prohibited conduct) do not need to comply with the Insurance Code including, but not limited to, the requirement to belong to the Oregon Insurance Guaranty Association.

(10)

If a service contract seller is not the same person as the obligor under the service contract, the service contract seller shall remit the agreed-upon consumer purchase price of the service contract to the obligor within 30 days after selling the service contract or in accordance with terms and conditions to which the service contract seller and obligor agree in writing. [Formerly 646.267; 2013 c.527 §2]

Source: Section 646A.154 — Service contract defined; registration; proof of financial stability; bond; action; rules; applicability of Insurance Code, https://www.­oregonlegislature.­gov/bills_laws/ors/ors646A.­html.

Notes of Decisions

“Authorized insurer” has same meaning as under ORS 731.066. National Warranty Insurance Co. v. Greenfield, 24 F. Supp. 2d 1096 (D. Or. 1998)

Federal law preempts financial stability proof requirement that does not recognize reimbursement insurance policy issued by risk retention group. National Warranty Insurance Co. v. Greenfield, 24 F. Supp. 2d 1096 (D. Or. 1998)

Financial stability requirement that reimbursement insurance be issued by “authorized insurer” violates federal law by discriminating against risk retention groups. National Warranty Insurance Company RRG v. Greenfield, 214 F3d 1073 (9th Cir. 2000)

646A.030
Definitions for ORS 646A.030 to 646A.042
646A.032
Price list for health spa services
646A.034
Contracts
646A.036
Contracts and rules
646A.038
Moneys paid prior to facility opening
646A.040
Waiver of provisions of ORS 646A.030 to 646A.042
646A.042
Remedies and obligations supplementary to existing remedies
646A.050
Definitions
646A.052
Form of purchase agreement
646A.054
Rules
646A.060
Purchase of used goods
646A.062
Penalty for violation of ORS 646A.060
646A.064
Definitions for ORS 646A.064 to 646A.067
646A.065
Records required for transactions involving items of precious metal
646A.066
Applicability to local ordinances
646A.067
Preemption of local requirements applicable to pawnbrokers
646A.068
Penalty for violating ORS 646A.065
646A.070
Sale of telephonic equipment
646A.072
Exceptions to disclosure requirements
646A.075
Required information prior to purchase of dog
646A.077
Qualification for full refund
646A.080
Sale of novelty item containing mercury
646A.081
Prohibition on sale or installation of mercury vapor outdoor lighting fixtures
646A.082
Floral retail sales
646A.085
Sale of rights by distributor to exhibit motion picture without first giving exhibitor opportunity to view motion picture prohibited
646A.090
Offer to sell or lease motor vehicle under retail installment contract or lease agreement
646A.092
Advertisements for sale or lease of motor vehicle
646A.093
Disclosures for handling and shipping consumer goods required in advertisements, offers and sales
646A.095
Disclosure required when purchaser of product offered technical support through information delivery system
646A.097
Payment of sales commissions following termination of contract between sales representative and principal
646A.100
Definitions for ORS 646A.100 to 646A.110
646A.102
Notice of intent to conduct going out of business sale
646A.104
Information required in notice of intent
646A.106
Circumstances in which going out of business sale prohibited
646A.108
Prohibited conduct
646A.110
Applicability of ORS 646A.100 to 646A.110 and 646A.112
646A.112
Injunction of sham sale
646A.115
Software prohibited that interferes with sale of admission tickets to entertainment events
646A.120
Definitions for ORS 646A.120 to 646A.134
646A.122
Applicability of ORS 646A.120 to 646A.134
646A.124
General disclosure requirements
646A.126
Specific disclosure requirements
646A.128
Provisions prohibited in lease-purchase agreements
646A.130
Reinstatement of lease-purchase agreement by consumer
646A.132
Renegotiation or extension of lease-purchase agreement
646A.134
Disclosures required in advertisement for lease-purchase agreements
646A.140
Definitions for ORS 646A.140 and 646A.142
646A.142
Rental vehicle collision damage waiver notice
646A.150
Applicability of ORS 646A.150 to 646A.172
646A.152
Definitions for ORS 646A.150 to 646A.172
646A.154
Service contract defined
646A.156
Required contents of service contracts
646A.158
Prohibited conduct
646A.160
Service contract obligor as agent of insurer
646A.162
Investigation of violations
646A.164
Complaints and investigations confidential
646A.166
Refusal to continue or suspension or revocation of registration
646A.168
Assessment fee
646A.170
Remedies not exclusive
646A.172
Rules
646A.200
Definitions for ORS 646A.202 and 646A.204
646A.202
Payment processing systems
646A.204
Customer information
646A.206
Rules
646A.210
Requiring credit card number as condition for accepting check or share draft prohibited
646A.212
“Credit card” defined
646A.214
Verification of identity in credit or debit card transactions
646A.220
Credit card solicitation
646A.222
Charge card solicitation
646A.230
Action by Attorney General or district attorney
646A.232
Effect of compliance with federal law
646A.240
Treatment of child support obligations by creditor in applications for extensions of credit
646A.242
“Creditor” defined
646A.244
Cause of action for violation of ORS 646A.240
646A.274
Definitions for ORS 646A.276 and 646A.278
646A.276
Sale of gift card that expires, declines in value, includes fee or does not give option to redeem
646A.278
Requirements for sale of gift card that expires
646A.280
Definitions for ORS 646A.280 to 646A.290
646A.282
Simulated invoices prohibited
646A.284
Cause of action by Attorney General
646A.286
Cause of action by private party
646A.288
Presumptions in cause of action brought under ORS 646A.284 or 646A.286
646A.290
Construction
646A.292
Legislative intent
646A.293
Definitions for ORS 646A.293 and 646A.295
646A.295
Prohibited actions
646A.300
Definitions for ORS 646A.300 to 646A.322
646A.302
Application of ORS 646A.300 to 646A.322 to successor in interest or assignee of supplier
646A.304
Payment for farm implements, parts, software, tools and signs upon termination of retailer agreement
646A.306
Repurchase of inventory by supplier
646A.308
Civil action for supplier’s failure to pay
646A.310
Prohibited conduct by supplier
646A.312
Termination, cancellation or nonrenewal of retailer agreement
646A.314
New or relocated dealership
646A.316
Warranty claims
646A.318
Warranty claims
646A.320
Retailer’s improvements to products
646A.322
Remedies
646A.325
Repurchase of motor vehicle by manufacturer
646A.327
Attorney fees for action under ORS 646A.325
646A.340
Definitions for ORS 646A.340 to 646A.348
646A.342
Prohibited conduct
646A.344
Bond or letter of credit
646A.346
Damages
646A.348
Action by Attorney General
646A.350
Delivery of unrequested hazardous substances prohibited
646A.352
Penalty
646A.360
Unsolicited facsimile machine transmissions
646A.362
Exclusion of name from sweepstakes promotion mailing list
646A.365
Check, draft or payment instrument creating obligation for payment
646A.370
Definitions for ORS 646A.370 to 646A.374
646A.372
Limits on usage of automatic dialing and announcing device
646A.374
Prohibited actions
646A.376
Enforcement
646A.400
Definitions for ORS 646A.400 to 646A.418
646A.402
Availability of remedy
646A.404
Consumer’s remedies
646A.405
Manufacturer action under ORS 646A.404
646A.406
Presumption of reasonable attempt to conform
646A.408
Use of informal dispute settlement procedure as condition for remedy
646A.410
Informal dispute settlement procedure
646A.412
Action in court
646A.414
Limitations on actions against dealers
646A.416
Limitation on commencement of action
646A.418
Remedies supplementary to existing statutory or common law remedies
646A.430
Definitions for ORS 646A.430 to 646A.450
646A.432
Applicability of ORS 646A.430 to 646A.450
646A.434
Sale of vehicle protection product
646A.436
Warrantor registration
646A.438
Reimbursement insurance
646A.440
Required provisions of reimbursement insurance policy
646A.442
Vehicle protection product warranty administrator
646A.444
Recordkeeping requirements for warrantor
646A.446
Prohibited conduct for warrantor
646A.448
Prohibited activities
646A.450
Rules
646A.452
Enforcement by Attorney General
646A.460
Definitions for ORS 646A.460 to 646A.476
646A.462
Express warranty
646A.464
Repair of assistive device
646A.466
Replacement or refund after attempt to repair
646A.468
Procedures for replacement or refund
646A.470
Sale or lease of returned assistive device
646A.472
Dispute resolution
646A.474
Applicability of other laws
646A.476
Civil action for damages
646A.480
Definitions for ORS 646A.480 to 646A.495
646A.482
Estimate required before beginning work
646A.486
Prohibited actions if estimate exceeds $200
646A.490
Additional prohibited actions
646A.495
Owner designee
646A.500
Legislative findings
646A.502
Short title
646A.504
Definitions for ORS 646A.500 to 646A.514
646A.506
Prohibited conduct
646A.508
Penalties
646A.510
Exemptions
646A.512
Private right of action
646A.514
Scope of remedies
646A.525
Definitions for ORS 646A.525 to 646A.535
646A.530
Prohibited sales of certain children’s products
646A.535
Assistance of Attorney General in obtaining recall notices
646A.540
Definitions
646A.542
Requirement to document compliance
646A.544
Local government enforcement
646A.550
Short title
646A.555
License to engage in business activity not required for individual under 17 years of age
646A.560
Legislative findings
646A.562
Definitions for ORS 646A.560 to 646A.566
646A.564
Standards for mercury content in electric lamps
646A.566
Considerations for state agency procurement of lighting devices that contain mercury
646A.575
Definitions for ORS 646A.575 to 646A.590
646A.577
Limited license required
646A.580
Cost of coverage
646A.582
Written disclosure requirements
646A.585
Exceptions to license requirement
646A.588
Restrictions on modification or termination of coverage
646A.590
Rules
646A.592
Enforcement
646A.600
Short title
646A.602
Definitions for ORS 646A.600 to 646A.628
646A.604
Notice of breach of security
646A.606
Security freeze
646A.608
Deadline for placing security freeze
646A.610
Fees not permitted
646A.612
Conditions for lifting or removing security freeze
646A.614
Effect of security freeze on use of consumer reports or protective records
646A.616
Effect of request for consumer report subject to security freeze
646A.618
Prohibition on changes to consumer report subject to security freeze
646A.620
Prohibition on printing, displaying or posting Social Security numbers
646A.622
Requirement to develop safeguards for personal information
646A.624
Powers of director
646A.626
Rules
646A.628
Allocation of moneys
646A.640
Definitions
646A.643
License requirement to engage in debt buying
646A.646
License application
646A.649
Licensee’s principal place of business and registered agent
646A.652
Required notices
646A.655
Compliance with director’s standards
646A.658
Prohibited practices
646A.661
Director’s supervisory authority
646A.664
Enforcement actions
646A.667
Preemption
646A.670
Legal action to collect debt
646A.673
Rules
646A.677
Requirement to screen for financial assistance before transferring medical debt for collection
646A.680
Legislative intent
646A.683
Requirement to report increase in drug price
646A.686
Short title
646A.689
Requirement to report certain information concerning drug manufacturing and pricing
646A.692
Civil penalty
646A.693
Prescription Drug Affordability Board
646A.694
Annual affordability determination for identified drugs and insulin products
646A.695
Annual fees assessed against drug manufacturers
646A.696
Report to Health Care Cost Growth Target program and Legislative Assembly
646A.697
Study of market for generic drugs
646A.700
Short title
646A.702
Definitions for ORS 646A.702 to 646A.720
646A.705
Persons that are not foreclosure consultants
646A.710
Foreclosure consulting contract
646A.715
Cancellation
646A.720
Prohibited acts of foreclosure consultant
646A.725
Definitions for ORS 646A.725 to 646A.750
646A.730
Persons that are not equity purchasers
646A.735
Written contract
646A.740
Cancellation
646A.745
Required and prohibited acts
646A.750
Rebuttable presumptions
646A.755
Acts not precluded
646A.760
Civil action for damages
646A.765
Penalties
646A.770
Definitions
646A.773
Applicability of Insurance Code
646A.776
Required disclosures
646A.779
Determination of amount of waiver
646A.781
Cancellation and expiration
646A.784
Reimbursement insurance policies for guaranteed asset protection waivers
646A.787
Fiduciary responsibilities
646A.790
Unlawful practices
646A.800
Late fees on delinquent cable service accounts
646A.801
Termination of residential cable service or residential telecommunications service for certain persons
646A.803
Contest and sweepstakes solicitations
646A.806
Website with photographs and information about arrested persons
646A.808
Obtaining personal information by false representation via electronic media
646A.810
Patent infringement claim made in bad faith
646A.813
Security requirements for Internet-connected devices
Green check means up to date. Up to date