The Vermont Statutes Online

Title 8 : Banking and Insurance

Chapter 113 : Liability Insurance and Service Contract Companies

Subchapter 004 : SERVICE CONTRACT COMPANIES

• § 4251. Consumer disclosure requirements

  (a) Each service contract subject to this subchapter shall be written in clear, understandable language and easily read type and disclose the following:

  (1) the identity of the provider and the service contract seller;

  (2) the total purchase price of the contract, stated separately from the price of the goods purchased;

  (3) the existence of any deductible amount;

  (4) the procedures to file a claim, including the procedures for obtaining prior approval for repair work, the toll-free telephone number if prior approval is necessary for claim service and if the service contracts provide services essential to public health, safety, or welfare, the service contract provider shall either provide for 24-hour telephone assistance or state the procedure for obtaining reimbursement for emergency repairs performed outside normal business hours;

  (5) the terms for transferability of the contract;

  (6) the prerequisites for early cancellation;

  (7) the terms, restrictions, or conditions governing termination of the service contract by the service contract holder;

  (8) the obligations and duties of the service contract holder;

  (9) 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.

  (b) All service contract reimbursement insurance policies insuring service contracts issued, sold, or offered for sale in this State shall conspicuously state, that upon the failure of the provider to perform under the contract, the insurer that issued the policy shall pay on behalf of the provider any sums the provider is legally obligated to pay and shall provide the service that the provider is legally obligated to perform according to the provider’s contractual obligations under the service contracts issued or sold by the provider. (Added 1997, No. 109 (Adj. Sess.), § 2, eff. Sept. 1, 1998.)