2005 Idaho Code - 49-2804 — MOTOR VEHICLE SERVICE CONTRACT PROVISIONS

                                  TITLE  49
                                MOTOR VEHICLES
                                  CHAPTER 28
                       MOTOR VEHICLE SERVICE CONTRACTS
    49-2804.  MOTOR VEHICLE SERVICE CONTRACT PROVISIONS. The following
provisions shall apply to the sale of motor vehicle service contracts in the
state:
    (1)  A motor vehicle service contract may not be issued, sold or offered
for sale in this state unless the contract contains a statement in
substantially the following form: "Obligations of the motor vehicle service
contract provider under this motor vehicle service contract are guaranteed
under a service contract liability policy. Should the motor vehicle service
contract provider fail to pay or provide service on any claim within sixty
(60) days after proof of loss has been filed, the motor vehicle service
contract holder is entitled to make a claim directly against the insurance
company." The motor vehicle service contract shall also conspicuously state
the name and address and a toll-free claim service number of the insurer.
    (2)  The motor vehicle service contract must identify the motor vehicle
service contract provider, the seller and the motor vehicle service contract
holder.
    (3)  The motor vehicle service contract must conspicuously state the total
purchase price of the motor vehicle service contract.
    (4)  If prior approval of repair work is required, the motor vehicle
service contract must conspicuously state the procedure for obtaining prior
approval and for making a claim, including a toll-free telephone number for
claim service and a procedure for obtaining reimbursement for emergency
repairs performed outside of normal business hours.
    (5)  The motor vehicle service contract must conspicuously state the
existence of any deductible amount.
    (6)  The motor vehicle service contract must specify the merchandise and
services to be provided and any limitations, exceptions or exclusions. Any
preexisting conditions clause must specifically state which preexisting
conditions are excluded from coverage.
    (7)  The motor vehicle service contract must state any terms, restrictions
or conditions governing the transferability of the service contract.
    (8)  The motor vehicle service contract must state the terms, restrictions
or conditions governing cancellation of the service contract by either the
motor vehicle service contract holder or motor vehicle service contract
provider.
    (9)  A motor vehicle service contract may not be issued, sold or offered
for sale in this state unless the contract contains a statement in
substantially the following form: "Coverage afforded under this motor vehicle
service contract is not guaranteed by the Idaho Insurance Guarantee
Association."
    (10)  Cancellation. No motor vehicle service contract may be issued, sold
or offered in this state unless the service contract conspicuously states that
the motor vehicle service contract holder is allowed to cancel the service
contract:
    (a)  Within thirty (30) days of its purchase if no claim has been made and
    receive a full refund of the service contract retail price, less any
    cancellation fee stated in the service contract not exceeding fifty
    dollars ($50.00); or
    (b)  At any other time and receive a pro rata refund of the service
    contract retail price for the unexpired term of the service contract,
    based on the number of the lapsed months, miles or such other measure
    which is clearly disclosed in the service contract, less any cancellation
    fees stated in the service contract not exceeding fifty dollars ($50.00).