SB 65 — Revise product contracts, vehicle agreements, motor vehicle laws

As ReportedPassed by the Senate Financial Institutions, Insurance and Technology Committee 136th General Assembly Regular Session Sub.

65 2025-2026 Senator Lang ToCosponsors: amend sections 1317.05, 3905.426, 4509.06, and 1 4509.70 and to enact section 1310.251 of the 2 Revised Code to modify the law governing 3 ancillary product protection contracts, vehicle 4 value protection agreements, and uninsured 5 drivers.

Senators Cirino, DeMora, Hicks-Hudson, Ingram, Johnson, O'Brien, Patton, Reineke, Reynolds, Roegner, Schaffer, Weinstein To amend sections 1317.05, 3905.426, 4509.06, and 1 4509.70 and to enact section 1310.251 of the 2 Revised Code to modify the law governing 3 ancillary product protection contracts, vehicle 4 value protection agreements, and uninsured 5 drivers.

18 (2) "Motor vehicle" has the same meaning as in section 19 Sub.

65 Page 2 As ReportedPassed by the Senate Financial(2) Institutions,"Motor Insurancevehicle" andhas Technologythe Committeesame meaning as in section 19 4501.01 of the Revised Code and also includes utility vehicles 20 and under-speed vehicles as defined in that section.

42 If the premium for insurance of like kind and amount, as 43 fixed in the published manual of a recognized standard rating 44 bureau designated by the retail seller, is less than the amount 45 charged the retail buyer as fixed in the written instrument in 46 compliance with division (D) of section 1317.04 of the Revised 47 Code, the retail buyer may deduct an amount equal to three times 48 the difference from the amount owed the retail seller, or the 49 Sub.

65 Page 3 As ReportedPassed by the Senate Financialthe Institutions,difference Insurancefrom andthe Technologyamount Committeeowed the retail seller, or the 49 retail seller's successor in interest.

The 79 extension of credit, terms of the credit, or the terms of the 80 Sub.

65 Page 4 As ReportedPassed by the Senate Financialextension Institutions,of Insurancecredit, andterms Technologyof Committeethe credit, or the terms of the 80 related motor vehicle sale or lease shall not be conditioned on 81 the purchase of the debt cancellation or debt suspension 82 product.

107 (i) Repair or replacement of glass on a motor vehicle 108 Sub.

65 Page 5 As ReportedPassed by the Senate Financial(i) Institutions,Repair Insuranceor andreplacement Technologyof Committeeglass on a motor vehicle 108 necessitated by wear and tear or damage caused by a road hazard;

133 (b) A motor vehicle ancillary product protection contract 134 may, but is not required to, provide for incidental payment of 135 indemnity under limited circumstances, including, without 136 limitation,Sub. towing, rental, and emergency road services.

137 Sub.

65 Page 6 As ReportedPassed by the Senate Financiallimitation, Institutions,towing, Insurancerental, and Technologyemergency Committeeroad (c)services. "Motor vehicle ancillary product protection contract" 138 does not include any of the following:

137 (c) "Motor vehicle ancillary product protection contract" 138 does not include any of the following:

161 (6) (7) "Road hazard" means a condition that may cause 162 damage or wear and tear to a tire or wheel on a public or 163 private roadway, roadside, driveway, or parking lot or garage, 164 includingSub. potholes, nails, glass, road debris, and curbs.

"Road 165 Sub.

65 Page 7 As ReportedPassed by the Senate Financialincluding Institutions,potholes, Insurancenails, andglass, Technologyroad Committeedebris, hazard"and doescurbs. not include fire, theft, vandalism or malicious 166 mischief, or other perils normally covered by automobile 167 physical damage insurance.

"Road 165 hazard" does not include fire, theft, vandalism or malicious 166 mischief, or other perils normally covered by automobile 167 physical damage insurance.

192 (C) A motor vehicle ancillary product protection contract 193 issued by a provider that is required to be covered by a 194 Sub.

65 Page 8 As ReportedPassed by the Senate Financialissued Institutions,by Insurancea andprovider Technologythat Committeeis required to be covered by a 194 reimbursement insurance policy under division (B) of this 195 section shall conspicuously state all of the following:

222 (F) A vehicle value protection agreement that, under the 223 Sub.

65 Page 9 As ReportedPassed by the Senate Financial(F) Institutions,A Insurancevehicle andvalue Technologyprotection Committeeagreement that, under the 223 terms of the agreement, may be canceled by the contract holder 224 more than thirty days after the effective date of the agreement 225 must state the conditions under which it may be canceled, 226 including the procedures for requesting any refund of the 227 purchase price paid by the contract holder and the methodology 228 for calculating any refund of the purchase price.

251 (H) Any refund under divisions (E) and (F) of this section 252 shall be paid to the seller or assignee of a retail installment 253 contract or lease agreement unless otherwise agreed to by the 254 Sub.

65 Page 10 As ReportedPassed by the Senate Financialcontract Institutions,or Insurancelease andagreement Technologyunless Committeeotherwise agreed to by the 254 contract holder and the seller or assignee.

282 (H) (L) Unless issued by an insurer authorized or eligible 283 Sub.

65 Page 11 As ReportedPassed by the Senate Financial(H) Institutions,(L) InsuranceUnless andissued Technologyby Committeean insurer authorized or eligible 283 to do business in this state, a contract identified in division 284 (A)(3)(c)(i) (A)(4)(c)(i) or (v) of this section does not 285 constitute a contract substantially amounting to insurance, or 286 the contract's issuance the business of insurance, under section 287 3905.42 of the Revised Code.

311 (4) The procedure for making a claim under the contract or 312 Sub.

65 Page 12 As ReportedPassed by the Senate Financial(4) Institutions,The Insuranceprocedure andfor Technologymaking Committeea claim under the contract or 312 agreement, including a toll-free telephone number for claims 313 service and a procedure for obtaining emergency repairs or 314 replacements performed outside normal business hours.

(A) After consultation with the insurance 340 companies authorized to issue automobile liability or physical 341 damage policies, or both, in this state, the superintendent of 342 Sub.

65 Page 13 As ReportedPassed by the Senate Financialdamage Institutions,policies, Insuranceor andboth, Technologyin Committeethis state, the superintendent of 342 insurance shall approve a reasonable plan, fair and equitable to 343 the insurers and to their policyholders, for the apportionment 344 among such companies of applicants for such policies and for 345 motor-vehicle liability policies who are in good faith entitled 346 to but are unable to procure such policies through ordinary 347 methods.

371 (1) Shall be recognized as if issued by an insurance 372 Sub.

65 Page 14 As ReportedPassed by the Senate Financial(1) Institutions,Shall Insurancebe andrecognized Technologyas Committeeif issued by an insurance 372 company authorized to do business in this state;

65 Page 15 As ReportedPassed by the Senate Financial Institutions, Insurance and Technology Committee (H)(1) For the purposes of division (H) of this section, 401 "insurance agent" has the same meaning as in section 3905.01 of 402 the Revised Code.

65 Page 16 As ReportedPassed by the Senate Financial Institutions, Insurance and Technology Committee to the plan for automobile insurance coverage unless the agent 429 exercises due diligence in confirming that the person seeking 430 insurance is unable to obtain coverage through an insurer 431 authorized to do business in this state.

65 Page 17 As ReportedPassed by the Senate Financial Institutions, Insurance and Technology Committee costs less than other insurers.