AN ACT relating to products that offer benefits in connection with personal property.

Create new sections of KRS Chapter 367 to establish regulatory requirements for vehicle financial protection products; establish the purpose of the requirements; define terms; provide that vehicle financial protection products issued before, on, or after the effective date of the Act shall not be considered insurance; establish exemptions from the regulatory requirements; provide that amounts charged or financed for vehicle financial protection products are authorized charges to be stated separately and shall not be considered…

Attorney General Boats and Boating Consumer Protection Contracts Effective Dates, Delayed Insurance Loans, Credit, Interest, And Usury Motor Vehicles Transportation

Introduced: February 3, 2026

Last action: April 3, 2026

(Acts Ch. 16)

Effective date: set within the act

This act specifies its own effective date(s) for some or all of its sections instead of following the standard 90-day rule (Ky. Constitution § 55) — see the act text for the exact dates.

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Plain-language summary

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This bill sets rules for financial protection products tied to vehicles, such as agreements that cover a car's value or cancel a loan balance under certain conditions. It clarifies that these products are not insurance and that their costs cannot be treated as loan interest or finance charges. It also prohibits lenders or dealers from requiring buyers to purchase these products as a condition of getting a loan or completing a vehicle sale or lease. Who it may affect: Kentuckians buying or leasing a vehicle, auto lenders, and dealers who offer vehicle financial protection products.

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