The Vermont Statutes Online
The Statutes below include the actions of the 2025 session of the General Assembly.
NOTE: The Vermont Statutes Online is an unofficial copy of the Vermont Statutes Annotated that is provided as a convenience.
Subchapter
004
:
SERVICE CONTRACT COMPANIES
(Cite as: 8 V.S.A. § 4251)
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§ 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.)