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Governor Signs Senate Bill 273: Clarifies Key Fob Protection Products Are Not Insurance

Governor Kasich signed SB 273 on December 19, 2018.  The bill includes an OADA-supported provision which expands the definition of “motor vehicle ancillary product protection contract” to include the replacement of a lost, stolen, or inoperable key or key fob.  By including key fob protection products in the definition, the state of Ohio is clarifying that such products are not insurance.  

Key fob protection products now fall into the same category as paintless dent removal, repair or replacement of glass (such as windshield repair), and fabric protection.  Wheel and Tire protection products are now also included within this category.  The Department of Insurance requires that the all of these products be guaranteed via reimbursement insurance.  The addition of key fob protection in the list of products that are not insurance will not require any changes to how dealers sell or offer these products. 

OADA will continue to provide updates to our members regarding the effective date of SB 273.  For additional questions, please contact Joe Cannon, Vice President of Government Relations, at 614-923-2237 or Sara Bruce, Vice President of Legal Affairs, at 614-923-2243.

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