(a)A motor vehicle value protection agreement shall disclose in writing and in clear, understandable language that is easy to read all of the following:
(1)The name and address of the provider, contract holder, and administrator, if any.
(2)The terms of the agreement including, without limitation, the purchase price to be paid by the contract holder, if any, and the requirements for eligibility, conditions of coverage, or exclusions.
(3)A provision that the agreement may be cancelled by the contract holder within a free look period as specified in the agreement, and that in the event the contract holder will be entitled to a full refund of the purchase price paid by the contract holder, if any, so long as no benefits have been provided.
(4)The procedure the contract holder must follow
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(a) A motor vehicle value protection agreement shall disclose in writing and in clear, understandable language that is easy to read all of the following:
(1) The name and address of the provider, contract holder, and administrator, if any.
(2) The terms of the agreement including, without limitation, the purchase price to be paid by the contract holder, if any, and the requirements for eligibility, conditions of coverage, or exclusions.
(3) A provision that the agreement may be cancelled by the contract holder within a free look period as specified in the agreement, and that in the event the contract holder will be entitled to a full refund of the purchase price paid by the contract holder, if any, so long as no benefits have been provided.
(4) The procedure the contract holder must follow, if any, to obtain a benefit under the terms and conditions of the agreement including, if applicable, a telephone number or website and address where the contract holder may apply for a benefit.
(5) A provision indicating whether or not the agreement is cancellable after the free look period and the conditions under which it may be cancelled, including the procedures for requesting any refund of the unearned purchase price paid by the contract holder.
(6) In the event of cancellation, the methodology for calculating any refund of the unearned purchase price of the agreement due.
(7) A provision specifying that the extension of credit, the terms of the credit, or the terms of the related motor vehicle sale or lease, may not be conditioned upon the purchase of the agreement.
(8) The terms, restrictions, or conditions governing cancellation of the agreement prior to the termination or expiration date of the agreement by either the provider or the contract holder.
(b) The provider shall mail a written notice to the contract holder at the last known address of the contract holder contained in the records of the provider at least five days prior to cancellation by the provider. Prior notice is not required if the reason for cancellation is nonpayment of the provider fee, a material misrepresentation by the contract holder to the provider or administrator, or a substantial breach of duties by the contract holder relating to the covered product or its use. The notice shall state the effective date of the cancellation and the reason for the cancellation. If an agreement is cancelled by the provider for a reason other than nonpayment of the provider fee, the provider shall refund to the contract holder all of the unearned pro rata provider fee paid by the contract holder, if any. If coverage under the agreement continues after a claim, any refund may deduct claims paid and a reasonable administrative fee not to exceed seventy-five dollars ($75).
(c) This section shall not apply to commercial transactions.