The Vermont Statutes Online

Title 8 : Banking and Insurance

Chapter 113 : Liability Insurance and Service Contract Companies

Subchapter 004 : Service Contract Companies

• § 4253. Prohibited acts

  (a) A provider shall not use in its name, contracts or literature:

  (1) the words “insurance,” “casualty,” “surety,” “mutual”; or

  (2) a name deceptively similar to the name or description of any insurance or surety corporation or any other provider licensed to do business in this State.

  (b) No provider or its agent shall advertise, print, display, publish, distribute, or broadcast, or cause to permit the foregoing to occur, in any manner whatsoever, any statement or representation with regard to the rates, terms, or conditions of a service contract that is false, misleading, or deceptive.

  (c) No service contract sold or offered for sale to a consumer in this State shall fail to contain the authorization of the original service contract holder to return the contract within 20 days of receipt of the contract if no claim has been made under the contract and obtain a refund of the full purchase price of the contract. Each provider shall provide or mail a copy of the service contract to the customer within 14 days of the date of sale, unless the provider makes a copy of the service contract terms and conditions available to the consumer at the point of sale, in which event the provider must provide or mail the service contract to the customer within a reasonable period of time.

  (d) Nothing in this subchapter shall be construed to impair or in any way affect any rule of law applicable to or governing service contracts not otherwise subject to this subchapter. (Added 1997, No. 109 (Adj. Sess.), § 2, eff. Sept. 1, 1998; amended 2021, No. 105 (Adj. Sess.), § 177, eff. July 1, 2022.)