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Georgia regulates vehicle value protection agreements and establishes consumer cancellation rights
Original title: Professions and businesses; contractors; change certain provisions
Last action · March 25, 2026: Senate Committee Favorably Reported By SubstituteSponsors: Dale Washburn and 6 others
Bill progressHistory & official text ↓
Introduced
Committee
Floor Vote
Passed
Law
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Public stanceCommunity reactions are separate from the official record and reporting.
What This Bill Proposed
HB 187 establishes new regulatory standards for s in Georgia, requiring providers to maintain financial security or insurance, grant a 30-day with full refunds under certain conditions, and provide clear contract disclosures. The measure prohibits conditioning vehicle financing or purchases on acquiring these agreements and grants enforcement authority to the Attorney General.
Why it matters
Vehicle buyers gain statutory cancellation rights and mandatory refund guarantees, while agreement providers must meet specific capitalization, reserve, or insurance thresholds to operate in the state.
Who It Would Have Affected
Groups the bill's text would have affected, as described in the record. Being affected is not a position for or against it.
Directly affected
Consumers
Consumers receive mandated contract disclosures, cancellation rights, 30-day free look periods, and direct insurer claims access.
Directly affected
Vehicle value protection agreement providers
Providers must comply with new financial security requirements, reserve minimums, cancellation notice rules, and face civil penalties for violations.
Directly affected
Insurers
Insurers backing these agreements must meet specific capital and surplus thresholds and reimburse consumers if providers fail to perform.
Key Facts
- Vehicle value protection agreements must provide a free look period of at least 30 days during which consumers can cancel for a full refund if no benefits have been provided.
- Providers must ensure agreements are backed by an insurer with at least $15 million in unimpaired paid-in capital and surplus, or at least $10 million with specific net written premium ratios.
- Alternatively, providers can maintain a funded reserve account equal to at least 40 percent of money received minus claims paid, plus a trust security of at least 5 percent and over $25,000 with the Commissioner of Insurance.
- Providers or their parent companies may also qualify by maintaining a net worth or stockholders' equity of at least $100 million.
Show all 8 facts
- If a provider fails to pay a consumer within 60 days after proof of damage, total loss, or unrecovered theft, the consumer is allowed to file a claim directly with the insurer.
- Vehicle finance or purchase agreements cannot be conditioned on the consumer entering into a vehicle value protection agreement.
- The Attorney General is authorized to bring civil actions to enjoin violations, obtain restitution, and impose civil penalties of up to $2,500 per violation.
- Violations of the article also constitute a violation of the Fair Business Practices Act of 1975, subject exclusively to public remedies administered by the Attorney General.
Frequently Asked Questions
What is a vehicle value protection agreement under this bill?
It is a contractual agreement for a separate charge where a provider agrees to give a benefit upon an adverse event, which can be applied to a traded-in vehicle's cash value, replacement vehicle finance agreement, or replacement vehicle purchase price.
Can I cancel a vehicle value protection agreement after purchasing it?
Yes, consumers are authorized to cancel the agreement during a of at least 30 days, resulting in a full refund if no benefits have been provided.
What happens if a provider fails to pay an eligible claim?
If the provider does not pay within 60 days after proof of damage, total loss, or unrecovered theft is provided, the consumer can file a claim for reimbursement directly with the provider's backing insurer.
What else do you want to know?
News Coverage
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Votes, people, money & the original sourceWhere This Stands
This bill did not become law - Died at adjournment · passed the House · in Senate committee.
Procedural history
11 actions- Mar 25, 2026SenateCommitteeSenate Committee Favorably Reported By Substitute
- Jan 12, 2026SenateSenate Recommitted
- Mar 25, 2025SenateSenate Read Second Time
- Mar 21, 2025SenateCommitteeSenate Committee Favorably Reported
- Feb 28, 2025SenateIntroducedSenate Read and Referred
- Feb 27, 2025HouseHouse Third Readers
Show 5 earlier actions
- Feb 27, 2025HouseFloorHouse Passed/Adopted By Substitute
- Feb 11, 2025HouseCommitteeHouse Committee Favorably Reported By Substitute
- Feb 3, 2025HouseHouse Second Readers
- Jan 30, 2025HouseIntroducedHouse First Readers
- Jan 29, 2025HouseIntroducedHouse Hopper
Version history & redline
4 versions on fileComparing LC 55 0466S/hcs → Sen Ctee Sub LC 56 0668S
removed addedOfficial text
removed: 25 LC 55 0466S
House Bill 187 (COMMITTEE SUBSTITUTE)
By: Representatives Washburn of the 144th , Powell of the 33rd , McDonald III of the 26th ,
Carpenter of the 4th , McCollum of the 30th , and others
A BILL TO BE ENTITLED
AN ACT
To amend Titles 8, 10, 36, 43, and 46 of the Official Code of Georgia Annotated, relating to buildings and housing, commerce and trade, local government, professions and businesses, and public utilities and public transportation, respectively, so as to change certain provisions relating to certain professions practicing in this state; to change certain provisions relating to electrical contractors, plumbers, conditioned air contractors, low voltage contractors, and utility contractors; to change certain definitions; to provide for qualifications of the State Construction Industry Licensing Board; to provide for certain restrictions relating to classes of low voltage licenses; to change certain provisions related to the power and duties of the divisions and the division director; to provide for additional licensing requirements; to provide requirements for license renewals and inactive licenses; to provide for approval of safety training; to change certain provisions relating to applicability; to provide for conforming cross-references and terminology; to provide for related matters; to provide for an effective date; to repeal conflicting laws; and for other purposes. BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA: PART I SECTION 1-1. Title 43 of the Official Code of Georgia Annotated, relating to professions and businesses, is amended by revising Chapter 14, relating to electrical contractors, plumbers, conditioned air contractors, low-voltage contractors, and utility contractors, as follows: "CHAPTER 14 43-14-1. This chapter is enacted for the purpose of safeguarding homeowners, other property owners, tenants, and the general public against faulty, inadequate, inefficient, or unsafe electrical, plumbing, low-voltage low voltage wiring, 86,023 more removed characters - read the previous versionadded: 26 LC 56 0668S
The Senate Committee on Regulated Industries and Utilities offered the following
substitute to HB 187:
A BILL TO BE ENTITLED
AN ACT
To amend Chapter 1 of Title 10 of the Official Code of Georgia Annotated, relating to selling and other trade practices, so as to provide for procedures, conditions, and limitations relative to vehicle value protection agreements; to require providers of such agreements maintain certain security or liability insurance policies; to require certain disclosures; to provide for cancellation rights; to provide for refunds; to provide for enforcement; to provide for definitions; to provide for related matters; to repeal conflicting laws; and for other purposes. BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA: SECTION 1. Chapter 1 of Title 10 of the Official Code of Georgia Annotated, relating to selling and other trade practices, is amended by adding a new article to read as follows: "ARTICLE 38 10-1-970. As used in this article, the term: (1) 'Administrator' means the person delegated by a provider as responsible for the administrative or operational functions of a vehicle value protection agreement, including but not limited to, adjudication of claims or benefit requests by the consumer. (2) 'Consumer' means a person who purchases or holds legal rights under a vehicle value protection agreement. (3) 'Covered vehicle' means a motor vehicle that is covered under a vehicle value protection agreement. (4) 'Finance agreement' means a loan, lease, or retail installment sales contract for the purchase or lease of a motor vehicle that is secured by the motor vehicle and with a term of at least 12 months. (5) 'Free look period' means a time period that begins the day on which the vehicle value protection agreement becomes effective and ends the last day on which the consumer may cancel the vehicle value protection agreement with a full refund of the vehicle value protection agreement purchase price. (6) 'Motor vehicle' shall have the same meaning as set forth in Code Section 40-1-1. (7) 'Provider' means a person that is obligated to provide a benefit under a vehicle value protection agreement. (8) 'Vehicle value protection agreement' means a contractual agreement for a separate charge between a provider and consumer under which the provider agrees, upon occurrence of an adverse event to the consumer's covered vehicle, to provide a benefit to the consumer that may be applied to the cash value of the covered vehicle when traded in for a replacement vehicle, the finance agreement for a replacement vehicle, or the purchase or lease price of a replacement vehicle. Such term shall include vehicle trade-in agreements, vehicle diminished value agreements, vehicle cash down payment protection agreements, and vehicle depreciation benefit agreements. 10-1-971. (a) A provider shall be authorized to utilize an administrator for fulfillment of the terms of a vehicle value protection agreement. (b) A vehicle value protection agreement shall conspicuously disclose: (1) The name, address, and contact information of: (A) The provider; (B) An administrator, if any; and (C) The consumer; (2) The terms of the vehicle value protection agreement, including: (A) The charges under the vehicle value protection agreement; (B) The benefit eligibility requirements; (C) The conditions imposed by the vehicle value protection agreement, including, but not limited to, any requirement that the consumer return to the dealer where the vehicle was purchased to obtain a benefit, if applicable, such term shall only be enforceable if it was agreed separately on a signed form laying out only such condition; and (D) The procedure a consumer is required to follow to obtain the benefit; and (3) The terms or restrictions governing cancellation of the vehicle value protection agreement, including: (A) That the consumer shall be authorized to cancel the vehicle value protection agreement during the free look period; (B) The length of the free look period; (C) The consumer's right to a refund for cancellation under Code Section 10-1-973; and (D) The methodology for calculating any refund owed the consumer upon cancellation. (c) The disclosure required by subparagraph (b)(3)(A) of this Code section shall conspicuously state upon the first page of the vehicle value protection agreement: 'IN ACCORDANCE WITH GEORGIA CODE SECTION 10-1-973, YOU MAY CANCEL THIS AGREEMENT AT ANY TIME BEFORE THE END OF THE FREE LOOK PERIOD DESCRIBED IN THIS AGREEMENT.' (d) No vehicle value protection agreement shall be sold unless the consumer has been or will be provided access to a copy of such vehicle value protection agreement. (e) A finance agreement or vehicle purchase agreement shall not be conditioned on a consumer entering into a vehicle value protection agreement. 10-1-972. No vehicle value protection agreement may be entered into with a consumer unless a provider: (1)(A) Ensures each of its vehicle value protection agreements issued under an insurance policy are issued by an insurer licensed to transact business in this state that: (i) Has on file with the Commissioner of Insurance evidence of possession and maintenance of unimpaired, paid-in capital and surplus of at least $15 million with annual filings of financial statements, its annual statements with the Securities Valuation Office of the National Association of Insurance Commissioners or an investment grade by a securities rating organization accepted by the National Association of Insurance Commissioners, and the actuarial certification required by and filed in the insurer's state of domicile; or (ii) When an insurer has unimpaired, paid-in capital and surplus of at least $10 million, demonstrates to the satisfaction of the Commissioner of Insurance that the insurer maintains net written premiums to paid-in capital and surplus of not greater than a 3 to 1 ratio and files its annual statements with the Securities Valuation Office of the National Association of Insurance Commissioners or an investment grade by a securities rating organization accepted by the National Association of Insurance Commissioners, and the actuarial certification required by and filed in the provider's state of domicile; (B) Requires the insurer to reimburse the consumer if the provider fails to perform the provider's obligations under a vehicle value protection agreement; (C) Ensures such insurance covers any amount the provider is required to pay for failure to perform under a vehicle value protection agreement; and (D) Allows a consumer to file with the insurer a claim for reimbursement under the vehicle value protection agreement if the provider does not pay the consumer within 60 days after the day on which proof of damage, total loss, or unrecovered theft of the covered vehicle is provided to the provider in accordance with the terms of the vehicle value protection agreement; (2)(A) Maintains a funded reserve account to cover the provider's obligations under all vehicle value protection agreements the provider enters into that is equal to or greater than 40 percent of money received by, less claims paid to, the provider for the vehicle value protection agreements; and (B) Places in a trust with the Commissioner of Insurance a security that is equal to at least 5 percent of money received by, less claims paid to, the provider for all vehicle value protection agreements the provider enters into and more than $25,000.00; or (3) Maintains, or has a parent company that maintains, a net worth or stockholders' equity of at least $100 million and, upon any request by the Commissioner of Insurance, files a copy of its Form 10-K or Form 20-F disclosure statements, or, if it does not file with the United States Securities and Exchange Commission, a copy of its audited financial statements reported on generally accepted accounting principles, demonstrating net worth or stockholders' equity of at least $100 million. If the provider's financial statements are consolidated with those of its parent company, then the provider may comply with the provisions of this paragraph by filing the statements of its parent company. 10-1-973. (a) A vehicle value protection agreement shall provide for a free look period of at least 30 days. (b) If a consumer cancels a vehicle value protection agreement within the free look period, the consumer shall be entitled to a refund of the charges under the vehicle value protection agreement as follows: (1) When benefits have not been provided under the vehicle value protection agreement, a full refund; or (2) When benefits under the vehicle value protection agreement have been provided, a refund to the extent provided for in the vehicle value protection agreement. (c)(1) Except as otherwise provided for in paragraph (2) of this subsection, if a provider cancels a vehicle value protection agreement, the provider shall mail written notice to the consumer at least five days before the day on which the vehicle value protection agreement terminates. (2) A provider shall be authorized to immediately cancel a vehicle value protection agreement when such cancellation is due to the consumer's failure to pay the provider's fee under the vehicle value protection agreement or a breach by the consumer of the consumer's duties relating to the covered vehicle. Any provider that cancels a vehicle value protection agreement pursuant to this paragraph shall send notice of such cancellation to the consumer, which shall include the effective date of the cancellation and the reason for the cancellation. (d) If a provider cancels a vehicle value protection agreement for a reason other than the consumer's failure to pay the provider's fee under the vehicle value protection agreement, the provider: (1) Shall refund the consumer any unearned provider fee under the vehicle value protection agreement; (2) Shall be authorized to charge the consumer an administrative fee of up to $75.00; and (3) Shall be authorized to deduct the amount of a benefit paid under the vehicle value protection agreement from the refund. 10-1-974. (a) If the Attorney General has reason to believe that any provider or administrator has violated or is violating this article and such violation affects one or more residents of this state, the Attorney General shall be authorized to bring a civil action in any appropriate court to: (1) Enjoin further such violation by the defendant; (2) Enforce compliance with this article; (3) Obtain damages, restitution, or other compensation on behalf of the residents of this state; (4) Impose a civil penalty of up to $2,500.00 for each violation of this article; and (5) Obtain other remedies permitted under state law. (b) Any violation of this article shall additionally be a violation of Part 2 of Article 15 of this chapter, the 'Fair Business Practices Act of 1975'; provided, however, that only public remedies as administered by the Attorney General shall be available under such part for violations of this article. (c) Nothing in this article shall be construed to prohibit any district attorney, law enforcement officer, official, or agency of this state from initiating or continuing any proceeding in a court against a provider or administrator for a violation of any other civil law or a criminal law of this state." SECTION 2. All laws and parts of laws in conflict with this Act are repealed.
Redline computed from the official version text (record lane).View this version →
Voting Record
PASSAGE
Total
174
- Yes
- 154
- No
- 2
- Present
- 0
- Not voting
- 6
- Abstain
- 0
- Other positions
- 12
How they voted (174)
Matt HatchettParty not recordedyes
Marvin LimParty not recordednot voting
Jon BurnsParty not recordednot voting
Carter BarrettParty not recordedyes
Carolyn HugleyParty not recordedyes
Deborah SilcoxParty not recordedyes
Will WadeParty not recordedyes
Kimberly AlexanderParty not recordedyes
Rhonda BurnoughParty not recordedyes
Mary Ann SantosParty not recordedyes
Beth CampParty not recordedyes
Buddy DeLoachParty not recordedyes
Tangie HerringParty not recordedyes
Yasmin NealParty not recordedyes
Don ParsonsParty not recordedyes
Jaclyn FordParty not recordedyes
Alan PowellParty not recordedyes
Nissa JonesParty not recordedyes
Omari CrawfordParty not recordedyes
Tim FlemingParty not recordedyes
Viola DavisParty not recordedyes
Inga WillisParty not recordedyes
Lydia GlaizeParty not recordedyes
Bethany BallardParty not recordedyes
150 more members
Holt PersingerParty not recordedyes
Joe CampbellParty not recordedyes
Josh BonnerParty not recordedyes
Miriam ParisParty not recordedyes
Sheila JonesParty not recordedyes
Sandra ScottParty not recordedyes
Charlice ByrdParty not recordedno
Eric BellParty not recordedyes
Mekyah McQueenParty not recordedexcused
Rick TownsendParty not recordedyes
El-Mahdi HollyParty not recordedyes
Shea RobertsParty not recordedyes
John CorbettParty not recordedyes
Karla DrennerParty not recordedyes
Mitchell ScogginsParty not recordedyes
Angela MooreParty not recordednot voting
Matt ReevesParty not recordedyes
Robert DickeyParty not recordedyes
Gary RichardsonParty not recordedyes
Dale WashburnParty not recordedyes
Lehman FranklinParty not recordedyes
John CarsonParty not recordedyes
Floyd GriffinParty not recordedyes
Jesse PetreaParty not recordedyes
Karlton HowardParty not recordedyes
Jan JonesParty not recordedyes
Chris ErwinParty not recordedyes
Lauren McDonaldParty not recordedyes
Gabe OkoyeParty not recordedyes
Solomon AdesanyaParty not recordedyes
Billy MitchellParty not recordedyes
Trey RhodesParty not recordedyes
Victor AndersonParty not recordedyes
Arlene BecklesParty not recordedyes
Park CannonParty not recordedyes
Jasmine ClarkParty not recordedyes
Bill YeartaParty not recordedyes
Scott HolcombParty not recordedyes
Mike CheokasParty not recordedyes
Debbie BucknerParty not recordedyes
Saira DraperParty not recordedyes
Anne WestbrookParty not recordedyes
Eddie LumsdenParty not recordedyes
Teddy ReeseParty not recordedyes
Steven MeeksParty not recordedyes
Mary Frances WilliamsParty not recordedyes
Sharon CooperParty not recordedyes
David WilkersonParty not recordedyes
Emory DunahooParty not recordedyes
David ClarkParty not recordedyes
Kim SchofieldParty not recordedyes
Steve TarvinParty not recordedyes
Devan SeabaughParty not recordedyes
Imani BarnesParty not recordedyes
Dar'shun KendrickParty not recordedyes
Robert DawsonParty not recordedyes
Vance SmithParty not recordedyes
Edna JacksonParty not recordedexcused
Chuck MartinParty not recordedyes
Jutt HowardParty not recordedyes
Lynn SmithParty not recordedyes
Dewey McClainParty not recordedyes
Shaw BlackmonParty not recordedyes
Mike CameronParty not recordedyes
Tyler SmithParty not recordedyes
Joseph GullettParty not recordedyes
Mitchell HornerParty not recordedyes
Steven SainzParty not recordedyes
Gerald GreeneParty not recordedyes
Betsy HollandParty not recordedyes
Doreen CarterParty not recordedyes
Noelle KahaianParty not recordedno
Bill HitchensParty not recordedyes
David JenkinsParty not recordedyes
Rob LeverettParty not recordedyes
Spencer FryeParty not recordedyes
Gabriel SanchezParty not recordedyes
Robert FlournoyParty not recordedyes
Debra BazemoreParty not recordedexcused
Long TranParty not recordedyes
Rhonda TaylorParty not recordednot voting
Katie DempseyParty not recordedyes
Martin MomtahanParty not recordedyes
Bruce WilliamsonParty not recordedyes
Sylvia Wayfer BakerParty not recordedyes
Soo HongParty not recordedyes
Terry CummingsParty not recordedyes
Butch ParrishParty not recordedyes
Michelle AuParty not recordedyes
Matthew GambillParty not recordedyes
Rey MartinezParty not recordednot voting
Jason RidleyParty not recordedyes
Danny MathisParty not recordedyes
Sam ParkParty not recordedexcused
Rick JasperseParty not recordedyes
Karen MathiakParty not recordedyes
Michael SmithParty not recordedexcused
Mack JacksonParty not recordedexcused
Chuck EfstrationParty not recordedyes
Todd JonesParty not recordedyes
David HuddlestonParty not recordedyes
Sandy DonatucciParty not recordedyes
Kimberly NewParty not recordedyes
Sharon HendersonParty not recordedexcused
Bill WerkheiserParty not recordedyes
Trey KelleyParty not recordedyes
Mary Margaret OliverParty not recordedyes
Chas CannonParty not recordedyes
Tanya MillerParty not recordedyes
Stacey EvansParty not recordedyes
L.C. MylesParty not recordedyes
Matt DubnikParty not recordedyes
James BurchettParty not recordedyes
Lee HawkinsParty not recordedyes
Noel WilliamsParty not recordedyes
Demetrius DouglasParty not recordedyes
Derrick JacksonParty not recordedyes
David SampsonParty not recordedyes
Carl GilliardParty not recordedexcused
Johnny ChastainParty not recordedyes
Ron StephensParty not recordedyes
Scott HiltonParty not recordedyes
Esther PanitchParty not recordedyes
Brent CoxParty not recordedyes
Brad ThomasParty not recordedyes
Matt BartonParty not recordedyes
Al WilliamsParty not recordedexcused
Lisa CampbellParty not recordedyes
Derrick McCollumParty not recordedexcused
Jordan RidleyParty not recordedyes
Bryce BerryParty not recordedyes
Rob CliftonParty not recordedyes
Angie O'SteenParty not recordedyes
Darlene TaylorParty not recordedyes
Stan GunterParty not recordedyes
Patty Marie StinsonParty not recordedexcused
Clint CroweParty not recordedyes
Carmen RiceParty not recordedyes
Kasey CarpenterParty not recordedyes
Phil OlaleyeParty not recordedyes
Houston GainesParty not recordedyes
Karen LuptonParty not recordedyes
Regina Lewis-WardParty not recordednot voting
Segun AdeyinaParty not recordedyes
Ginny EhrhartParty not recordedyes
John LaHoodParty not recordedyes
Leesa HaganParty not recordedexcused
Mark NewtonParty not recordedyes
Ruwa RommanParty not recordedyes
Brian PrinceParty not recordedyes
Lobbying Activity
No state lobbying filings in our records match this bill. Federal lobbying reports (LDA) cover Congress, so they are not listed on state bills.
Full breakdown
Who this bill affects and the strongest case for and against it, written only from the bill’s own text.
Sponsors
Connected Entities
PersonCommissioner of Insurance“State official receiving insurer financial filings and security deposits”Map →
OrganizationSecurities Valuation Office of the National Association of Insurance Commissioners“Entity receiving annual financial statements from insurers”Map →
OrganizationNational Association of Insurance Commissioners“Association whose accepted securities rating organizations evaluate insurers”Map →
OrganizationUnited States Securities and Exchange Commission“Federal agency receiving Form 10-K or Form 20-F filings from parent companies”Map →
Sources
Open source document
www.legis.ga.gov
Analysis Score
0–100- Significance20Lowered because this bill did not pass (its text scored 65)
- Controversy20Intensity of disagreement among stakeholders
- Entertainment5Compellingness for a non-policy-wonk reader
- Buzz30Current news / social attention level
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