Sec. 21.59.130. Motor vehicle service contract provider; duties.

493 words·~2 min read·/ak/title-21/chapter-59/21-59-130

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(a)A provider may not market, offer for sale, sell, issue, or make a motor vehicle service contract in this state unless the provider provides to the motor vehicle service contract holder

(1)a receipt for, or other written evidence of, the purchase of the motor vehicle service contract; and

(2)a copy of the motor vehicle service contract within a reasonable time after the date of purchase.

(b)A provider shall, on request, provide a prospective purchaser with a sample copy of the provider's motor vehicle service contract showing terms and conditions. A provider may comply with this subsection by providing the prospective purchaser with a sample copy of the terms and conditions or by directing the prospective purchaser to an Internet website containing a complete sample of the terms and conditions of the proposed motor vehicle service contract.

(c)A motor vehicle service contract provider may not use in the provider's name the word “insurance,” “casualty,” “surety,” “mutual,” or another word that describes insurance, casualty, or surety business activity, or use a name deceptively similar to the name or description of an insurance or surety corporation or another provider; however, the name of a provider may include the word “guaranty.”

(d)A provider or the provider's representative may not make, or permit or cause to be made, a false or misleading statement or deliberately omit a material statement that would be misleading if omitted in a motor vehicle service contract or literature associated with the contract.

(e)A person may not require the purchase of a motor vehicle service contract as a condition of a loan or a condition for the sale of a motor vehicle.

(f)A provider may appoint an administrator or other designee to administer all or a part of a motor vehicle service contract if the provider and administrator have a written agreement that specifically sets out the duties, functions, powers, authority, and compensation of all parties to the agreement. A provider is liable for the acts of an administrator appointed by the provider to assist with the administration of the provider's motor vehicle service contracts to the extent the acts relate to the provider's motor vehicle service contracts offered in or from this state.

(g)A provider or a third party acting on the provider's behalf may not make a false, deceptive, or misleading statement in a solicitation, during telemarketing, or in other advertising, including a statement regarding

(1)the provider's affiliation with a motor vehicle manufacturer;

(2)information in the provider's possession regarding a motor vehicle owner's current motor vehicle manufacturer's original equipment warranty;

(3)the expiration of a motor vehicle owner's current motor vehicle manufacturer's original equipment warranty; or

(4)a requirement that a motor vehicle owner register for a new motor vehicle service contract with the provider to maintain coverage under the motor vehicle owner's current motor vehicle service contract or manufacturer's original equipment warranty.