Last reviewed: 11 November 2026
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United StatesMissouri service contracts: what RSMo 385.300 to 385.320 covers, and why home warranties fall outside it
In Missouri, home warranties are not regulated under the state's service contract law. Sections 385.300 to 385.320 of the Revised Statutes of Missouri say they "shall not apply to" agreements or warranties covering the systems, appliances and structural components of "residential or commercial real property" (RSMo 385.320.1(8)).2 For the service contracts the law does cover, a provider registers with the director of the Department of Commerce and Insurance and backs its contracts with a reserve and deposit, a net worth of $100 million, or reimbursement insurance.14 This page sets out what those sections say. Vehicle service contracts have their own sections, 385.200 to 385.220.14
In short
- Home warranties: excluded by section 385.320.1(8). The same exclusion is in the version of section 385.320 that took effect on 28 August 2007.23
- Who registers: "It is unlawful for any person to issue, sell or offer for sale in this state any service contract, unless each provider has registered with the director" (s. 385.302.1). The rule sets the fee at $300 and the renewal window at 1 January to 1 February each year.412
- What backs it: a funded reserve of at least 40 per cent plus a security deposit of at least $25,000, a $100 million net worth, or reimbursement insurance from an authorized insurer (s. 385.302.4).4
- Free look: at least 20 days to return a mailed contract, or 10 days if delivered at sale, for a full refund if no claim has been made (s. 385.306.12).6
- Not insurance: "Service contract providers and administrators are not deemed to be engaged in the business of insurance in this state" (s. 385.300(14)).1
The home warranty exclusion
The service contract sections sit in chapter 385, "Credit Insurance and Service Contracts." The chapter also holds separate sections for motor vehicle extended service contracts (385.200 to 385.220), vehicle protection products (385.400 to 385.436) and motor clubs (385.450).18
Section 385.300(14) defines a service contract as "a contract for a specific duration and consideration to perform the repair, replacement, or maintenance of property or indemnification for repair, replacement, or maintenance, for the operational or structural failure of any residential or other property due to a defect in materials, workmanship, or normal wear and tear." It adds that service contracts "may provide for the repair, replacement or maintenance of property for damage resulting from power surges or accidental damage."1
Section 385.320 then lists what the sections do not reach. Item (8) is "Agreements or warranties which provide for the service, repair, replacement, or maintenance of the systems, appliances, and structural components of residential or commercial real property."2 That wording was already in the version of section 385.320 in effect from 28 August 2007, where it was item (7). The current version, effective 28 August 2021 (L. 2007 H.B. 221, A.L. 2021 S.B. 6), adds motor club contracts as item (7) and moves the real-property exclusion to item (8).32
| Item | What the statute says |
|---|---|
| (1) | "Warranties"2 |
| (2) | "Maintenance agreements"2 |
| (3) | Warranties, service contracts or maintenance agreements offered by public utilities on their transmission devices, to the extent they are regulated under Missouri law2 |
| (4) | Service contracts sold or offered to persons other than consumers2 |
| (5) | Service contracts sold or offered to nonresidents of Missouri2 |
| (6) | Motor vehicle extended service contracts, as defined in section 385.2002 |
| (7) | Motor club contracts, as defined in section 385.4502 |
| (8) | Agreements or warranties for the systems, appliances and structural components of residential or commercial real property2 |
A "consumer" is "a natural person who buys other than for purposes of resale any tangible personal property" that is "normally used for personal, family, or household purposes" (s. 385.300(2)). A "warranty" is one made "without charge" by the manufacturer, importer or seller that "is not negotiated or separated from the sale of the product" (s. 385.300(15)).1 A manufacturer's service contracts on its own products need only comply with sections 385.306, 385.308 and 385.316 (s. 385.320.2).2
What the text leaves open. The sections do not define the terms used in item (8), such as "systems" or "structural components."1 Whether a contract on a single appliance in a home falls inside item (8) is a question the text does not answer, and this page does not answer it. The sections cited here set up no separate registration for home warranties. This page does not say whether any other Missouri law, including the insurance code, applies to a home warranty. For how states without a home-warranty regime are handled, see our guide to state consumer protection acts.
Who registers, and with whom
The regulator named in the sections is the "director," defined as "the director of the department of commerce and insurance" (s. 385.300(4)). A "provider" is "a person who is contractually obligated to the service contract holder under the terms of a service contract" (s. 385.300(11)).1 Section 385.302.1 makes it unlawful to issue, sell or offer a service contract in Missouri "unless each provider has registered with the director on a form prescribed by the director," and lets the director set a fee by rule, "not to exceed three hundred dollars annually."4
Rule 20 CSR 200-18.110 requires each provider to register "prior to issuing any service contracts and annually thereafter between January 1 and February 1 of each year," with a registration fee of $300. For that rule, "provider" refers only to the party contractually obligated to provide service and "does not refer to an administrator or seller of the product that is not so obligated."12 The department's registration form (375-0586, revised 4-2026) asks for the provider's details, the name and address of each administrator it uses, and which financial responsibility method it will use.13
A provider may, but need not, appoint an administrator to handle administration and compliance (s. 385.302.2). The provider or its designee must give the holder a copy of the contract "within a reasonable period of time following the date of purchase" (s. 385.302.3). Provider fees are not subject to premium taxes; premiums for reimbursement insurance policies are (s. 385.302.5).4 Who does what in a contract is covered in our guide to the roles of the parties in a service contract.
How a provider backs its contracts
Section 385.302.4 says that, "in order to assure the faithful performance of a provider's obligations to its contract holders," each obligated provider must comply with one of three routes.4
| Route | What the statute says |
|---|---|
| Reserve and deposit | A funded reserve account; the reserve "shall not be less than forty percent of gross consideration received, less claims paid," on all in-force contracts, subject to the director's examination, plus a financial security deposit in trust with the director worth at least 5 per cent of gross consideration received, less claims paid, "but not less than twenty-five thousand dollars": a surety bond, eligible securities, cash, a letter of credit, or another form set by regulation4 |
| Net worth | A net worth of $100 million, shown by the provider's or its parent company's most recent Form 10-K or Form 20-F, or audited financial statements; a parent whose statements are used must agree to guarantee the provider's Missouri service contract obligations4 |
| Reimbursement insurance | Insure all service contracts under a reimbursement insurance policy from an insurer authorized in Missouri. If the provider cannot fulfil its obligations "for any reason, including insolvency, bankruptcy, or dissolution," the insurer pays losses and unearned fees directly to the claiming holder, and the insurer assumes full responsibility for administering claims if the provider cannot do so4 |
The reimbursement insurer must have surplus and paid-in capital of at least $15 million, or at least $10 million with a ratio of net written premiums to surplus and paid-in capital of not more than three to one, and must file its financial statements each year (s. 385.302.4(4)).4 The policy must state that, if the provider fails to perform, "including the failure to return the unearned provider fee," the insurer "shall pay or perform" (s. 385.304).5 An insurer may not end the policy until notice has been mailed or delivered to the director, and ending it "shall not reduce the issuer's responsibility" for contracts issued before that date (s. 385.312).9 Providers are treated as the insurer's agent for obligating the insurer to holders, and the provider's payment of premium "is not a condition to the insurer's obligations" (s. 385.314.1).10
Rule 20 CSR 200-18.120 adds conditions. A reimbursement policy with any deductible or retention payable by the policyholder or a claimant does not qualify, and the policy must require the insurer to give the director at least 60 days' notice before terminating it. A funded reserve account must be kept in cash or cash assets, used only for the provider's obligations to Missouri contract holders, at an institution insured by the Federal Deposit Insurance Corporation. A surety bond must be on the director's Form SC-3, and a parent company guarantee must substantially follow Form SC-4.12 For how these two kinds of backing compare across states, see reimbursement insurance vs. a funded reserve.
What the contract must say
Section 385.306.1 requires service contracts to be written in clear and understandable language that conspicuously discloses the section's requirements, with the entire contract "printed or typed in easy-to-read type."6 The section then lists what a contract must state.6
| Subject | What the statute requires |
|---|---|
| Insured contracts | "Obligations of the provider under this service contract are guaranteed under a reimbursement insurance policy. If the provider fails to pay or provide service on a claim within sixty days after proof of loss has been filed, the contract holder is entitled to make a claim directly against the insurance company," plus the insurer's name and address (subsection 2)6 |
| Uninsured contracts | "Obligations of the provider under this service contract are backed only by the full faith and credit of the provider (issuer) and are not guaranteed under a reimbursement insurance policy," plus the provider's name and address (subsection 3)6 |
| Parties | Any administrator, the provider obligated to perform, and the seller if different; these may be added before delivery (subsection 4)6 |
| Price | The total purchase price and the terms of sale; the price may be negotiated at the time of sale (subsection 5)6 |
| Claims | If prior approval of repair work is required, the procedure for approval and for making a claim, a toll-free number for claim service, and a procedure for emergency repairs outside normal business hours (subsection 6)6 |
| Deductible and coverage | Any deductible; the merchandise and services provided and any limitations, exceptions or exclusions; any limits on the number or value of repairs, replacements or settlements (subsections 7, 8 and 15)6 |
| Parts | When nonoriginal manufacturer's parts, refurbished merchandise or substitute service may be used (subsection 9)6 |
| Transfer and termination | Any terms, restrictions or conditions on transfer, and on termination by the holder and the provider (subsections 10 and 11)6 |
| Holder's duties | All of the holder's obligations, such as protecting against further damage and required service and maintenance (subsection 13)6 |
| Exclusions | Whether the contract covers or excludes consequential damages, preexisting conditions, or events covered by the original manufacturer's warranty (subsection 14)6 |
Returning a contract
Section 385.306.12 sets a free-look period for contracts where the holder pays "a separate, identified consideration." The provider must let the holder return the contract "within at least twenty days of the date of mailing of the service contract or within at least ten days if the service contract is delivered at the time of sale," or a longer period the contract allows. If no claim has been made, "the contract is void" and the provider refunds or credits "the full purchase price." "A ten percent penalty per month shall be added to a refund that is not paid within forty-five days of return of the contract to the provider." The free-look period applies "only to the original service contract purchaser."6
Outside the free-look period, sections 385.300 to 385.320 do not set a refund formula for cancellation. Section 385.306.11 requires the contract to state its terms for termination by the holder and the provider.6 For how other states handle refunds, see cancelling a service contract: state statutes compared.
Prohibited practices
Section 385.308 makes several practices unlawful.7
| Subject | What the statute says |
|---|---|
| Names | A provider may not use in its name "the words insurance, casualty, guaranty, surety, mutual," other words descriptive of those businesses, or a name deceptively similar to an insurer, surety or other provider; a company using such a name before 28 August 2007 must state in its contracts: "This contract is not an insurance contract." (subsections 1 and 2)7 |
| Misleading statements | No "false or misleading statement," and no deliberate omission of "any material statement that would be considered misleading if omitted," in the sale, offer or advertisement of a contract (subsection 3)7 |
| Required purchase | A lender may not require the purchase of a service contract as a condition of a loan, and a manufacturer or retailer may not require it as a condition of the sale of goods or services (subsections 4 and 5)7 |
Records and enforcement
Providers and administrators must keep accounts, books and records, including copies of each type of contract issued, holder names and addresses, sales locations, and claims files, and must keep records for each holder "for at least three years after the specified period of coverage had expired" (s. 385.310).8 A provider leaving the state keeps its records until it gives the director "satisfactory proof that it has discharged all obligations to contract holders in this state."8
The director "may conduct investigations or examinations of providers, administrators, insurers, or other persons" to enforce the sections and "protect service contract holders in this state," may issue administrative orders under section 374.046, and may bring a civil action for relief under section 374.048 (s. 385.316).11
Missouri's general consumer protection law
The Merchandising Practices Act declares unlawful "any deception, fraud, false pretense, false promise, misrepresentation, unfair practice or the concealment, suppression, or omission of any material fact in connection with the sale or advertisement of any merchandise in trade or commerce" (s. 407.020.1).16 "Merchandise" includes "any objects, wares, goods, commodities, intangibles, real estate or services" (s. 407.010(4)).15 Section 407.020.2(2) says the section does not apply to an entity "subject to chartering, licensing, or regulation by the director of the department of commerce and insurance under chapter 354 or chapters 374 to 385," unless the director specifically authorizes the attorney general to use the chapter's powers, or a statute gives those powers to the attorney general or a private citizen.16 This page does not say whether the Act, or that exception, applies to any particular home warranty or service contract.
Where to complain
The Department of Commerce and Insurance's consumer complaints page lists links to file a complaint against an insurance company or agent and against a vehicle service contract provider, among others, and gives the department's main office number as (573) 751-4126.17 That page does not list a separate route for home warranties or other service contracts.17 For how complaint routes differ between states, see where to file a warranty complaint.
Frequently asked questions
Does Missouri regulate home warranties?
Not under its service contract law. Section 385.320.1(8) says sections 385.300 to 385.320 do not apply to agreements or warranties for the service, repair, replacement or maintenance of the systems, appliances and structural components of residential or commercial real property.2 The sections cited on this page set up no separate registration for home warranties. This page does not say whether any other Missouri law applies to a particular home warranty.
Is a Missouri service contract insurance?
The definition of service contract in section 385.300(14) ends: "Service contract providers and administrators are not deemed to be engaged in the business of insurance in this state."1 A person selling contracts for a registered provider is exempt from licensing as an insurance producer, apart from the provider's registration duty (s. 385.302.6).4
Can I return a Missouri service contract for a full refund?
Section 385.306.12 says that where the holder pays a separate, identified consideration, the provider must let the holder return the contract within at least 20 days of the date it was mailed, or at least 10 days if it was delivered at the time of sale. If no claim has been made, the contract is void and the provider refunds or credits the full purchase price. The right applies only to the original purchaser.6
What if the provider does not pay a claim?
For a contract insured under a reimbursement insurance policy, the contract must say that if the provider fails to pay or provide service on a claim "within sixty days after proof of loss has been filed, the contract holder is entitled to make a claim directly against the insurance company" (s. 385.306.2).6 A contract that is not insured must say its obligations are "backed only by the full faith and credit of the provider (issuer)" (s. 385.306.3).6
Last reviewed: 11 November 2026. Statute text as published by the Missouri Revisor of Statutes; rule text as published by the Missouri Secretary of State (Code of State Regulations, update of 5/31/26). This page is general information about a statute, not legal advice.