Last reviewed: 7 October 2026
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United StatesRhode Island and West Virginia define a service contract and keep it out of insurance law; the quoted sections set no registry, backing rule, contract terms or refund rule
Two states put service contracts outside insurance law in very short texts. Rhode Island does it in a two-section chapter of its commercial law, and West Virginia does it inside the general provisions of its insurance chapter. This page sets out what each says and which familiar requirements the sections do not contain.
The short answer
- Rhode Island: "The offering, sale, or issuance of a service contract, vehicle theft protection product warranty, or maintenance agreement shall not be considered insurance or subject to the insurance laws of this state unless made expressly applicable thereto." 2
- West Virginia: the insurance chapter does not apply to "(4) Warranties; (5) Service contracts; (6) Maintenance agreements." The same section defines a service contract, provider, holder and warranty. 4
- What is not in them: Rhode Island's chapter, as indexed, has only definitions and the exemption, and West Virginia's section is an exemption plus definitions; neither sets a provider registry, a financial-backing rule, required contract terms or a refund rule. 1 2 3 4
Rhode Island: Chapter 57 of Title 6
Rhode Island's Consumer Service Contracts chapter has two sections, according to the chapter's index: definitions (§ 6-57-1) and a one-sentence exemption (§ 6-57-2).3 Section 6-57-2 reads in full: "The offering, sale, or issuance of a service contract, vehicle theft protection product warranty, or maintenance agreement shall not be considered insurance or subject to the insurance laws of this state unless made expressly applicable thereto."2 The history note on both sections cites P.L. 2019, chapters 188 and 243.12
Section 6-57-1 defines a "service contract" as a contract for a separately stated consideration for any duration to perform the repair, replacement or maintenance of a consumer product, or to indemnify for it, for operational or structural failure due to a defect in materials, workmanship, accidental damage from handling, or normal wear and tear, with or without incidental indemnity such as towing, rental, emergency road service and road hazard protection. A "consumer product" is tangible personal property normally used for personal, family or household purposes, "including a motor vehicle," and property intended to be attached to or installed in real property whether or not it is.1 The definition also lists vehicle add-ons (tire and wheel road-hazard repair, paintless dent removal, windshield chip or crack repair or replacement, key replacement, and repair or replacement of a vehicle for failure of an additive product to perform as represented), and covers "other services or products that may be approved by the director of the department of business regulation."1
Section 6-57-1 also defines "vehicle theft protection product" and "vehicle theft protection product warranty," the written agreement in which a warrantor pays specified incidental costs if the product fails to prevent loss or damage from theft, and "maintenance agreement," a contract of limited duration that provides for scheduled maintenance only.1
West Virginia: Code § 33-4-2
West Virginia handles the question inside Article 4 (General Provisions) of its insurance chapter. Section 33-4-2(a) lists what "no provision of this chapter shall apply to," including "(4) Warranties; (5) Service contracts; (6) Maintenance agreements."4 Subsection (b) then defines terms "for the purposes of this article."4
It defines a "service contract" as "an agreement entered into for a separately stated consideration and for a specified term under which a provider agrees to repair, replace, or maintain a product or provide indemnification for the repair, replacement, or maintenance of a product for operational or structural failure caused by a defect in materials or workmanship or by normal wear." The definition may add incidental payment such as towing, rental and emergency road service, or repair or replacement for damage from power surges or accidental damage incurred in handling the product, and expressly includes seven kinds of vehicle contract, from tire and wheel road-hazard repair to lease-end excess wear and use coverage.4 The "provider" is "a person who is obligated to a holder pursuant to the terms of a service contract to repair, replace, or perform maintenance on or to indemnify the holder" for goods, and the "holder" is "a resident of this state who either purchases a service agreement or is legally in possession of a service contract and is entitled to enforce the rights of the original purchaser."4
A "warranty" in West Virginia's text is an undertaking that guarantees indemnity for defective parts, mechanical or electrical breakdown, labor costs or other remedial measures, "made solely by the manufacturer, importer, or seller" without payment of additional consideration, not negotiated or separated from the sale and incidental to it. The section's definition of "warranty" includes a vehicle protection product warranty.4
The two side by side
| Question | Rhode Island (R.I. Gen. Laws ch. 6-57) | West Virginia (W. Va. Code § 33-4-2) |
|---|---|---|
| Where the exemption sits | Its own chapter, Title 6 (Commercial Law). Section 6-57-2 says the listed products are not "considered insurance or subject to the insurance laws of this state unless made expressly applicable thereto."2 | Inside the insurance chapter, Article 4. Subsection (a) says no provision of the chapter applies to warranties, service contracts or maintenance agreements.4 |
| Property covered | A "consumer product," which expressly includes a motor vehicle and property installed in real property.1 | A "product"; the section lists seven vehicle-specific contract kinds and the section does not define "product."4 |
| Accidental damage | The definition names accidental damage from handling.1 | The definition may add repair or replacement for damage from power surges or accidental damage incurred in handling the product.4 |
| Vehicle theft or protection products | Defines a vehicle theft protection product and warranty.1 | Defines a vehicle protection product and warranty.4 |
| Regulator named in the text | The director of the department of business regulation, only in the clause on other approved services or products.1 | None in the section.4 |
What these texts do not contain
Rhode Island's chapter, as indexed, consists of the two sections above; neither contains a provider registration or licensing rule, a financial-backing rule, a list of required contract terms or a refund rule.123 West Virginia's section 33-4-2 likewise contains none of those; it sets the exemption and the definitions.4 Other law in either state may apply to a service contract, for example general consumer protection law. This page does not review it, and our guide on state consumer protection acts explains the general idea. For a state that does build a registry, a backing rule and required terms, compare Maine or the District of Columbia.
Where this fits our standard
Points 1 to 4 of our standard ask about contract terms, refund rights, licensing and funded-claims backing. In these two states the quoted text does not itself set those items, so a check against the standard rests on the contract and on any other law that applies. The Register describes a method, not a verdict on any company.
How to verify this yourself
- Open Rhode Island's chapter index and sections 6-57-1 and 6-57-2 (references 1 to 3), and West Virginia's section 33-4-2 (reference 4). Every quotation above comes from them.
- Statutes in other states, such as Maine and the District of Columbia, set required contract terms; these two texts do not.
What this page is not
This is general information about the text of two short statutes, not legal advice. It does not say whether any contract or provider complies with any law. Statutes change; confirm the current text before relying on it.
What to do next
Read how a state with a fuller regime handles the same questions in our Kansas and Delaware guide, which covers two other short exemption statutes, then start from the state regulation hub.