2006 Utah Code - 31A-6a-104 — Required disclosures.

     31A-6a-104.   Required disclosures.
     (1) All service contract reimbursement insurance policies insuring service contracts issued, sold, or offered for sale in this state must conspicuously state that, upon failure of the provider to perform under the contract, the issuer of the policy shall pay on behalf of the provider any sums the provider is legally obligated to pay or shall provide the service which the provider is legally obligated to perform, according to the provider's contractual obligations under the service contracts issued or sold by the provider.
     (2) A 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 provider under this service contract are guaranteed under a service contract reimbursement insurance policy. Should the provider fail to pay or provide service on any claim within 60 days after proof of loss has been filed, the contract holder is entitled to make a claim directly against the Insurance Company." The contract shall also conspicuously state the name and address and a toll free claims service telephone number of the insurer.
     (3) The contract must identify the provider, the seller, and the service contract holder.
     (4) The contract must conspicuously state the total purchase price and the terms under which it is to be paid.
     (5) If prior approval of repair work is required, the 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.
     (6) The contract must conspicuously state the existence of any deductible amount.
     (7) The contract must specify the merchandise, services to be provided and any limitations, exceptions, or exclusions. Any preexisting conditions clause must specifically state which preexisting conditions are excluded from coverage.
     (8) The contract must state the conditions upon which the use of nonmanufacturers' parts will be allowed. Conditions stated must comply with applicable state and federal laws.
     (9) The contract must state any terms, restrictions, or conditions governing the transferability of the service contract.
     (10) The contract must state the terms, restrictions, or conditions governing cancellation of the contract by either the contract holder or provider, and must satisfy the provisions of Sections 31A-21-303 through 31A-21-305.
     (11) A service contract or reimbursement insurance policy 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 contract is not guaranteed by the Property and Casualty Guaranty Association."

Enacted by Chapter 203, 1992 General Session