2019 Hawaii Revised Statutes
TITLE 26. TRADE REGULATION AND PRACTICE
481X. Service Contracts
481X-6 Service contracts; receipt; disclosures.

§481X-6 Service contracts; receipt; disclosures. (a) Providers shall provide purchasers of a service contract with:

(1) A receipt for 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:

(1) State the name and address of:

(A) The provider; and

(B) The administrator of the contract, if different from the provider;

(2) Identify:

(A) The service contract seller; and

(B) The contract holder, to the extent that the contract holder has furnished the contract seller, administrator, or provider with that information;

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

(4) The procedure the 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 contract covers a motor vehicle, whether the use of nonoriginal manufacturer's parts is allowed;

(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 provider or contract holder prior to the contract's termination or expiration date;

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

(11) Any provision for, or exclusion of consequential damages or preexisting conditions that applies.

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

(d) Service contracts insured under a contractual liability insurance policy shall include the name and address of the insurer and contain a statement substantially similar to the following:

"Obligations of the provider under this service contract are insured under a service contract contractual liability insurance policy."

(e) Service contracts not insured under a contractual liability insurance policy shall contain a statement substantially similar to the following:

"Obligations of the provider under this service contract are backed by the full faith and credit of the provider."

[L 2000, c 221, pt of §2]