Receipt and Disclosures

(a)Service contract providers shall provide purchasers of a service contract with:

(1)a receipt or other written evidence of the purchase of the service contract that shall be provided to the service contract holder;

(2)a copy of the service contract that shall be provided within a reasonable period of time from the date of purchase; and

(3)except for offers or sales of service contracts by telephone, mail, or electronic means, a written copy of the basic terms and conditions of the service contract to be made available to the purchaser where the purchaser is physically present at the point of sale.

(b)Service contracts shall be written in clear, understandable language, and shall be printed or typed in a typeface and format that is easy to read.

(c)All service contracts shall have the following information:

(1)the name and address of the service contract provider and the administrator of the service contract, if different from the service contract provider;

(2)the identity of the service contract seller and the service contract holder, to the extent that the service contract holder has furnished the service contract seller, administrator, or service contract provider with that information;

(3)the terms of the sale, including the purchase price;

(4)the procedure the service contract holder must follow to obtain service;

(5)any deductible amount that applies;

(6)the specific merchandise and services to be provided, and any limitations, exceptions, or exclusions;

(7)where the service contract covers a motor vehicle, whether the use of non-original manufacturer’s parts is allowed; COL10312014 CH. 12 ADMINISTRATION

(8)any restrictions governing the transferability of the service contract that apply;

(9)the terms, restrictions, or conditions governing the return or cancellation of the service contract by either the service contract provider or service contract holder prior to the service contract’s termination or expiration date;

(10)the obligations and duties of the service contract holder, such as the duty to protect against any further damage, or to follow the owner’s manual instructions; and

(11)a provision for, or exclusion of consequential damages or preexisting conditions that apply. The information under Subsections

(1)and

(2)shall not be required to be preprinted on the service contract and may be added to the service contract at the time of sale. The purchase price under Subsection

(3)shall not be required to be preprinted on the service contract and may be negotiated with the service contract holder at the time of sale.