| Last Action | 03/12/26: 2nd reading, to Rules |
|---|---|
| Title | AN ACT relating to vehicle financial protection products. |
| Bill Documents |
Current
Introduced |
| Bill Request Number | 1901 |
| Sponsor | J. Howell |
| Summary of Original Version | Create new sections of KRS Chapter 367 to establish regulatory requirements for vehicle financial protection products; establish the purpose of the requirements; define terms; provide that vehicle financial protection products issued before, on, or after the effective date of the Act shall not be considered insurance; establish exemptions from the regulatory requirements; provide that amounts charged or financed for vehicle financial protection products are authorized charges to be stated separately and shall not be considered a finance charge or interest; prohibit conditioning the extension of credit, terms of a loan, or terms of a related vehicle sale or lease from being conditioned on the consumer's payment for a vehicle financial protection product; establish requirements for debt waivers; establish requirements for vehicle value protection agreements; amend KRS 190.100 and create a new section of Subtitle 4 of KRS Chapter 286 to require retail installment contracts and consumer loan companies to comply with the regulatory requirements for vehicle financial protection products; amend KRS 304.1-120 to conform; direct that the Act applies to vehicle financial protection products that become effective on or after January 1, 2027; EFFECTIVE January 1, 2027. |
| Index Headings of Original Version |
Attorney General - Vehicle financial protection products, regulatory requirements Boats And Boating - Vehicle financial protection products, regulatory requirements Consumer Protection - Vehicle financial protection products, regulatory requirements Contracts - Vehicle financial protection products, regulatory requirements Effective Dates, Delayed - Vehicle financial protection products, regulatory requirements, January 1, 2027 Insurance - Vehicle financial protection products, regulatory requirements Loans, Credit, Interest, And Usury - Finance agreement, vehicle financial protection products, regulatory requirements Motor Vehicles - Vehicle financial protection products, regulatory requirements Transportation - Vehicle financial protection products, regulatory requirements |
| Jump to Proposed Amendments |
House Committee Substitute 1 House Committee Amendment 1 |
| Votes | Vote History |
| 02/03/26 |
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|---|---|
| 02/06/26 |
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| 02/10/26 |
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| 02/11/26 |
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| 02/12/26 |
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| 02/13/26 |
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| 03/05/26 |
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| 03/11/26 |
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| 03/12/26 |
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| Amendment | House Committee Substitute 1 |
|---|---|
| Summary | Retain original provisions, except remove additional products designated by the Attorney General from the definition of "debt waiver"; exclude products that are insurance from the definition of "vehicle value protection agreement"; modify insurance requirements for debt waivers; remove authority for the Attorney General to designate additional forms of security that may be used to satisfy requirements for providers of vehicle value protection agreements; require a vehicle value protection agreement to disclose that the agreement is not a contract of insurance; apply Consumer Protection Act remedies, powers, and duties to violations of Sections 1 to 7 of the Act; require notice and opportunity for a hearing to comply with KRS Chapter 13B; provide persons aggrieved by a final order of the Attorney General with a right to appeal in accordance with KRS Chapter 13B; make technical and conforming amendments; create new sections of Subtitle 19 of KRS Chapter 304 to establish regulatory requirements relating to credit personal property insurance; define terms; establish exemptions from the regulatory requirements; establish limits on the amount and term of credit personal property insurance sold in conjunction with a closed-end credit transaction; require credit personal property insurance to cover a substantial risk of loss of, or damage to, the collateral pledged or secured in the credit transaction; prohibit an insurer from requiring bundling of other credit insurance coverages and from using gross debt in determining premiums; require a creditor to deliver, or cause to be delivered, a policy, certificate, memorandum or other disclosure disclosing the costs and coverage within 30 days after the date of the loan; require policies, certificates, plans, contracts, applications, enrollment forms, and schedules of premiums rates to be filed with the commissioner of the Department of Insurance; establish requirements for the refund of unearned premiums upon cancellation prior to the scheduled maturity date; establish requirements relating to the reporting and payment of claims; provide that a person aggrieved by a decision of the commissioner may request an administrative hearing; provide that a violation by an insurer is subject to the penalty provisions of Subtitle 99 of KRS Chapter 304; amend KRS 304.19-010, 304.19-020, 304.19-080, 304.19-090, and 304.19-130 to conform; direct that certain sections apply to contracts issued or renewed on or after the effective date of the section. |
| Index Headings |
Attorney General - Vehicle financial protection products, regulatory requirements Banks And Financial Institutions - Credit transactions, credit personal property insurance, regulatory requirements Consumer Protection - Vehicle financial protection products, regulatory requirements Contracts - Vehicle financial protection products, regulatory requirements Insurance - Credit personal property insurance, regulatory requirements Insurance - Vehicle financial protection products, regulatory requirements Loans, Credit, Interest, And Usury - Credit personal property insurance, regulatory requirements Property - Credit personal property insurance, regulatory requirements State Agencies - Department of Insurance, credit personal property insurance, regulatory requirements |
| Amendment | House Committee Amendment 1 |
|---|---|
| Sponsor | M. Meredith |
| Summary | Make title amendment. |
| Index Headings | Title Amendments - SB 158/GA |
Last updated: 3/19/2026 8:27 PM (EDT)