Montana Code Annotated 2013

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     30-14-1304. Required disclosure -- service contracts. (1) Service contracts marketed, sold, offered for sale, issued, made, proposed to be made, or administered in this state must be written, printed, or typed in clear understandable language that is easy to read and must disclose the requirements set forth in this section, as applicable.
     (2) Service contracts insured under a reimbursement insurance policy pursuant to 30-14-1302(2)(a) must contain the following items:
     (a) a statement that is in a form identical or similar to the following: "Obligations of the provider under this service contract are insured under a service contract reimbursement insurance policy."; and
     (b) the name and address of the insurer.
     (3) Service contracts not insured under a reimbursement insurance policy pursuant to 30-14-1302(2)(a) must contain a statement that is in a form identical or similar to the following: "Obligations of the provider under this service contract are backed by the full faith and credit of the provider."
     (4) Service contracts must state the name and address of the provider and must identify any administrator if different from the provider, the service contract seller, and the service contract holder if provided by the holder. The identities of all parties referred to in this subsection are not required to be preprinted on the service contract and may be added to the service contract at the time of the sale.
     (5) A service contract or the service contract holder's receipt must state the total purchase price and the terms under which the contract is sold. The purchase price is not required to be preprinted on the service contract and may be negotiated at the time of the sale with the service contract holder.
     (6) Service contracts must state the existence of any deductible amount, as applicable.
     (7) Service contracts must specify the merchandise and services to be provided and any limitations, exceptions, or exclusions.
     (8) Service contracts covering automobiles must state whether the use of nonoriginal manufacturer's parts are allowed.
     (9) Service contracts must state any restrictions governing the transferability of the service contract, as applicable.
     (10) Service contracts must state the terms, restrictions, or conditions governing cancellation of the service contract prior to the termination or expiration date of the service contract by either the provider or service contract holder.
     (11) (a) Except as provided in subsection (11)(b), the provider shall mail a written notice to the service contract holder at the last-known address of the contract holder contained in the records of the provider at least 5 days prior to the cancellation by the provider.
     (b) Prior notice is not required if the reason for cancellation is:
     (i) nonpayment of the provider fee;
     (ii) a material misrepresentation by the service contract holder to the provider; or
     (iii) substantial breach of duties by the service contract holder relating to the covered product or its use.
     (c) Any cancellation notice must state the effective date and reason for the cancellation.
     (12) Service contracts must set forth all of the obligations and duties of the service contract holder, including the duty to protect against any further damage and any requirement to follow the owner's manual.

     History: En. Sec. 4, Ch. 162, L. 2007.

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