As the regulatory environment for automotive finance and insurance products continues to shift, F&I Sentinel has outlined several legislative changes set to take effect on October 1, 2025, in Maryland, Nebraska, and Nevada. These updates are expected to impact American Financial Services Association (AFSA) members and industry partners.
In Maryland, House Bill 1046 will introduce new protections for consumers with mechanical repair contracts. The law prohibits these contracts from excluding coverage solely due to issues identified in technical service bulletins (TSBs), which are communications from vehicle manufacturers about recurring problems. As a result, providers cannot deny claims or include contract exclusions based only on TSB-listed repairs. Lenders are advised to ensure that financed add-on products comply with this new requirement.
Nebraska’s Legislative Bill 474 is also set to take effect on October 1. This legislation consolidates provisions from the state’s Installment Loan Act and Installment Sales Act into a single statute and updates the Nebraska Money Transmitters Act. The changes aim to streamline regulations related to installment sales and loans. For example, the Nebraska Banking Department may now conduct consolidated examinations of all branches, including compliance records.
Nevada’s Assembly Bill 498 will ease restrictions for out-of-state motor club agents by removing the licensure requirement if their home state offers reciprocal licensing agreements. Additionally, motor clubs will no longer need a physical business location within Nevada but must list their home office address on service contracts or membership cards. Lenders may need to review their due diligence processes for roadside assistance administrators under these new rules.
“These changes highlight the complex and evolving regulatory environment for F&I products, and more are coming. Consistently monitoring for legislative and regulatory changes, and requiring confirmation that add-on products have been updated to account for such changes, is an essential component of any compliance program.”
“As always, F&I Sentinel is dedicated to monitoring the complex, ever-evolving compliance environment. Contact our Concierge Compliance Team for more details on these and all other regulatory developments.”