31A-6a-104 - Required disclosures.
31A-6a-104. Required disclosures.
(1) A service contract reimbursement insurance policy insuring a service contract that isissued, sold, or offered for sale in this state must conspicuously state that, upon failure of theservice contract provider to perform under the contract, the issuer of the policy shall:
(a) pay on behalf of the service contract provider any sums the service contract provideris legally obligated to pay according to the service contract provider's contractual obligationsunder the service contract issued or sold by the service contract provider; or
(b) provide the service which the service contract provider is legally obligated toperform, according to the service contract provider's contractual obligations under the servicecontract issued or sold by the service contract provider.
(2) (a) A service contract may not be issued, sold, or offered for sale in this state unlessthe service contract contains the following statements in substantially the following form:
(i) "Obligations of the provider under this service contract are guaranteed under a servicecontract reimbursement insurance policy. Should the provider fail to pay or provide service onany claim within 60 days after proof of loss has been filed, the contract holder is entitled to makea claim directly against the Insurance Company."; and
(ii) "This service contract or warranty is subject to limited regulation by the UtahInsurance Department. To file a complaint, contact the Utah Insurance Department."
(b) A service contract or reimbursement insurance policy may not be issued, sold, oroffered for sale in this state unless the contract contains a statement in substantially the followingform, "Coverage afforded under this contract is not guaranteed by the Property and CasualtyGuaranty Association."
(3) A service contract shall:
(a) conspicuously state the name, address, and a toll free claims service telephonenumber of the reimbursement insurer;
(b) identify the service contract provider, the seller, and the service contract holder;
(c) conspicuously state the total purchase price and the terms under which the servicecontract is to be paid;
(d) conspicuously state the existence of any deductible amount;
(e) specify the merchandise, service to be provided, and any limitation, exception, orexclusion;
(f) state a term, restriction, or condition governing the transferability of the servicecontract; and
(g) state a term, restriction, or condition that governs cancellation of the service contractas provided in Sections 31A-21-303 through 31A-21-305 by either the contract holder or servicecontract provider.
(4) If prior approval of repair work is required, a service contract must conspicuouslystate the procedure for obtaining prior approval and for making a claim, including:
(a) a toll free telephone number for claim service; and
(b) a procedure for obtaining reimbursement for emergency repairs performed outside ofnormal business hours.
(5) A preexisting condition clause in a service contract must specifically state whichpreexisting condition is excluded from coverage.
(6) (a) Except as provided in Subsection (6)(c), a service contract must state theconditions upon which the use of a nonmanufacturers' part is allowed.
(b) A condition described in Subsection (6)(a) must comply with applicable state andfederal laws.
(c) This Subsection (6) does not apply to a home warranty contract.
Amended by Chapter 345, 2008 General Session