The regulations that cover the markets for ‘motor vehicle protection products’ are highly irregular. The products that are expressly authorized vary from state to state, and those that are permitted under current service contract laws by interpretation can vary even more. Still other states that no express statuory authorization for one or more of these products, in some instances, may choose to treat them as insurance products.
To compound the issue, the creation of the Consumer Financial Protection Bureau has added an additional layer of Federal regulation, which must be carefully tracked as well.