Alaska insurance bill, Senate Bill 132 (SB132), has been signed into law by Gov. Mike Dunleavy. This comprehensive insurance omnibus measure will reshape the landscape for service contracts, including vehicle service contracts, in the state. This new legislation is set to become effective on January 1, 2026 and makes several sweeping modifications to Alaska’s insurance laws.
A Shift in Regulatory Posture
The most notable change introduced by SB132 is a pivotal shift in regulatory posture. Starting next year, the state’s Division of Insurance will be required to pre-approve all service contracts and any modifications to these contracts before they can be sold in Alaska. This includes vehicle service contracts (VSCs), driving new compliance requirements for aftermarket product companies, dealerships and auto lenders funding the loans.
This move is part of a significant change for the industry, potentially adding friction to the rollout of VSCs and other related financial products within the state. For companies operating in Alaska, adapting to this pre-approval requirement will be crucial for continued compliance and market access.
What this means for F&I Sentinel clients:
For lenders leveraging F&I Sentinel’s Managed Compliance Solution powered by CITADEL, our Concierge Compliance Team will be requiring proof of state approval as part of the product form submission process for F&I products intended for sale in Alaska.
Lenders not using F&I Sentinel must begin vetting existing and any new VSCs sold in Alaska before funding to ensure the products have been approved by the Division of Insurance.
Ongoing Monitoring
We are committed to helping you navigate these new requirements. Stay in the know on all the legislative and regulatory actions from across the nation that affect F&I products.
Please contact your F&I Sentinel representative if you have any questions or require further assistance in ensuring your products meet the upcoming regulations in Alaska or elsewhere.
The information provided in this post does not, and is not intended to, constitute legal advice; instead, all information, content, and materials referenced are for general informational purposes only. Readers should contact their attorney to obtain advice with respect to any particular legal matter.
