Substitute House Bill No. 5870
          Substitute House Bill No. 5870

               PUBLIC ACT NO. 97-48


AN ACT CONCERNING HOME WARRANTY CONTRACTS.


    Be  it  enacted  by  the  Senate  and House of
Representatives in General Assembly convened:
    Section  38a-320  of  the  general statutes is
repealed and the following is substituted in  lieu
thereof:
    (a)  As  used in this section, [and subsection
(b)  of  section  38a-769,   a]   "home   warranty
contract"  or  "home  warranty  service agreement"
means any agreement [whereby] IN WHICH any person,
firm,   corporation  or  association  promises  or
agrees  to  repair  or  replace   any   structural
component  [,  appliance in, or system or any part
thereof  of,]  OF  a  single  or   multiple-family
dwelling  of  four  or less units, necessitated by
(1) wear and tear, (2) deterioration  or  inherent
defect,  [or]  (3)  failure  of  an  inspection to
detect  the   likelihood   of   wear   and   tear,
deterioration  or  such defect, OR (4) SUBSTANDARD
MATERIAL OR WORKMANSHIP. The  provisions  of  this
subsection  shall not apply to an agreement of any
seller with a purchaser, guaranteeing  workmanship
and  materials in connection with the sale of such
property.
    (b)  A home warranty contract or home warranty
service agreement as defined in subsection (a)  of
this   section  shall  constitute  a  contract  of
insurance within the meaning of section 38a-319.

Approved May 14, 1997