Requirements for sale of contracts--dealers not to be used as frontingcompanies--required contract contents.
385.206. 1. No person shall directly sell, offer for sale, orsolicit the sale of a motor vehicle extended service contract to aconsumer, other than the following:
(1) A dealer;
(2) A manufacturer of motor vehicles, as defined in section 301.010,RSMo;
(3) A federally insured depository institution;
(4) A lender licensed and defined under sections 367.100 to 367.215,RSMo; or
(5) An administrator, provider, manufacturer, or person working inconcert with an administrator, provider, or manufacturer marketing orselling a motor vehicle extended service contract demonstrating financialresponsibility as set forth in section 385.202.
2. No administrator or provider shall use a dealer as a frontingcompany, and no dealer shall act as a fronting company. For purposes ofthis subsection, "fronting company" means a dealer that authorizes athird-party administrator or provider to use its name or business to evadeor circumvent the provisions of subsection 1 of this section.
3. Motor vehicle extended service contracts issued, sold, or offeredfor sale in this state shall be written in clear, understandable language,and the entire contract shall be printed or typed in easy-to-read type andconspicuously disclose the requirements in this section, as applicable.
4. Motor vehicle extended service contracts insured under areimbursement insurance policy under subsection 3 of section 385.202 shallcontain a statement in substantially the following form: "Obligations ofthe provider under this service contract are guaranteed under a servicecontract reimbursement insurance policy. If the provider fails to pay orprovide service on a claim within sixty days after proof of loss has beenfiled, the contract holder is entitled to make a claim directly against theinsurance company." A claim against the provider also shall include aclaim for return of the unearned provider fee. The motor vehicle extendedservice contract also shall state conspicuously the name and address of theinsurer.
5. Motor vehicle extended service contracts not insured under areimbursement insurance policy pursuant to subsection 3 of section 385.202shall contain a statement in substantially the following form:"Obligations of the provider under this service contract are backed only bythe full faith and credit of the provider (issuer) and are not guaranteedunder a service contract reimbursement insurance policy." A claim againstthe provider also shall include a claim for return of the unearned providerfee. The motor vehicle extended service contract also shall stateconspicuously the name and address of the provider.
6. Motor vehicle extended service contracts shall identify anyadministrator, the provider obligated to perform the service under thecontract, the motor vehicle extended service contract seller, and theservice contract holder to the extent that the name and address of theservice contract holder has been furnished by the service contract holder.
7. Motor vehicle extended service contracts shall state conspicuouslythe total purchase price and the terms under which the motor vehicleextended service contract is sold. The purchase price is not required tobe preprinted on the motor vehicle extended service contract and may benegotiated at the time of sale with the service contract holder.
8. If prior approval of repair work is required, the motor vehicleextended service contracts shall state conspicuously the procedure forobtaining prior approval and for making a claim, including a toll-freetelephone number for claim service and a procedure for obtaining emergencyrepairs performed outside of normal business hours.
9. Motor vehicle extended service contracts shall state conspicuouslythe existence of any deductible amount.
10. Motor vehicle extended service contracts shall specify themerchandise and services to be provided and any limitations, exceptions,and exclusions.
11. Motor vehicle extended service contracts shall state theconditions upon which the use of nonoriginal manufacturer's parts, orsubstitute service, may be allowed. Conditions stated shall comply withapplicable state and federal laws.
12. Motor vehicle extended service contracts shall state any terms,restrictions, or conditions governing the transferability of the motorvehicle extended service contract.
13. Motor vehicle extended service contracts shall state the terms,restrictions, or conditions governing termination of the service contractby the service contract holder. The provider of the motor vehicle extendedservice contract shall mail a written notice to the contract holder withinfifteen days of the date of termination.
14. Motor vehicle extended service contracts shall require everyprovider to permit the service contract holder to return the contractwithin at least twenty business days of mailing date of the motor vehicleextended service contract or within at least ten days if the servicecontract is delivered at the time of sale or within a longer time periodpermitted under the contract. If no claim has been made under thecontract, the contract is void and the provider shall refund to thecontract holder the full purchase price of the contract. A ten percentpenalty per month shall be added to a refund that is not paid within thirtydays of return of the contract to the provider. The applicable free-looktime periods on service contracts shall apply only to the original servicecontract purchaser.
15. Motor vehicle extended service contracts shall set forth all ofthe obligations and duties of the service contract holder, such as the dutyto protect against any further damage and the requirement for certainservice and maintenance.
16. Motor vehicle extended service contracts shall state clearlywhether or not the service contract provides for or excludes consequentialdamages or preexisting conditions.
Requirements for sale of contracts--dealers not to be used as frontingcompanies--required contract contents.
385.206. 1. No person shall directly sell, offer for sale, orsolicit the sale of a motor vehicle extended service contract to aconsumer, other than the following:
(1) A dealer;
(2) A manufacturer of motor vehicles, as defined in section 301.010,RSMo;
(3) A federally insured depository institution;
(4) A lender licensed and defined under sections 367.100 to 367.215,RSMo; or
(5) An administrator, provider, manufacturer, or person working inconcert with an administrator, provider, or manufacturer marketing orselling a motor vehicle extended service contract demonstrating financialresponsibility as set forth in section 385.202.
2. No administrator or provider shall use a dealer as a frontingcompany, and no dealer shall act as a fronting company. For purposes ofthis subsection, "fronting company" means a dealer that authorizes athird-party administrator or provider to use its name or business to evadeor circumvent the provisions of subsection 1 of this section.
3. Motor vehicle extended service contracts issued, sold, or offeredfor sale in this state shall be written in clear, understandable language,and the entire contract shall be printed or typed in easy-to-read type andconspicuously disclose the requirements in this section, as applicable.
4. Motor vehicle extended service contracts insured under areimbursement insurance policy under subsection 3 of section 385.202 shallcontain a statement in substantially the following form: "Obligations ofthe provider under this service contract are guaranteed under a servicecontract reimbursement insurance policy. If the provider fails to pay orprovide service on a claim within sixty days after proof of loss has beenfiled, the contract holder is entitled to make a claim directly against theinsurance company." A claim against the provider also shall include aclaim for return of the unearned provider fee. The motor vehicle extendedservice contract also shall state conspicuously the name and address of theinsurer.
5. Motor vehicle extended service contracts not insured under areimbursement insurance policy pursuant to subsection 3 of section 385.202shall contain a statement in substantially the following form:"Obligations of the provider under this service contract are backed only bythe full faith and credit of the provider (issuer) and are not guaranteedunder a service contract reimbursement insurance policy." A claim againstthe provider also shall include a claim for return of the unearned providerfee. The motor vehicle extended service contract also shall stateconspicuously the name and address of the provider.
6. Motor vehicle extended service contracts shall identify anyadministrator, the provider obligated to perform the service under thecontract, the motor vehicle extended service contract seller, and theservice contract holder to the extent that the name and address of theservice contract holder has been furnished by the service contract holder.
7. Motor vehicle extended service contracts shall state conspicuouslythe total purchase price and the terms under which the motor vehicleextended service contract is sold. The purchase price is not required tobe preprinted on the motor vehicle extended service contract and may benegotiated at the time of sale with the service contract holder.
8. If prior approval of repair work is required, the motor vehicleextended service contracts shall state conspicuously the procedure forobtaining prior approval and for making a claim, including a toll-freetelephone number for claim service and a procedure for obtaining emergencyrepairs performed outside of normal business hours.
9. Motor vehicle extended service contracts shall state conspicuouslythe existence of any deductible amount.
10. Motor vehicle extended service contracts shall specify themerchandise and services to be provided and any limitations, exceptions,and exclusions.
11. Motor vehicle extended service contracts shall state theconditions upon which the use of nonoriginal manufacturer's parts, orsubstitute service, may be allowed. Conditions stated shall comply withapplicable state and federal laws.
12. Motor vehicle extended service contracts shall state any terms,restrictions, or conditions governing the transferability of the motorvehicle extended service contract.
13. Motor vehicle extended service contracts shall state the terms,restrictions, or conditions governing termination of the service contractby the service contract holder. The provider of the motor vehicle extendedservice contract shall mail a written notice to the contract holder withinfifteen days of the date of termination.
14. Motor vehicle extended service contracts shall require everyprovider to permit the service contract holder to return the contractwithin at least twenty business days of mailing date of the motor vehicleextended service contract or within at least ten days if the servicecontract is delivered at the time of sale or within a longer time periodpermitted under the contract. If no claim has been made under thecontract, the contract is void and the provider shall refund to thecontract holder the full purchase price of the contract. A ten percentpenalty per month shall be added to a refund that is not paid within thirtydays of return of the contract to the provider. The applicable free-looktime periods on service contracts shall apply only to the original servicecontract purchaser.
15. Motor vehicle extended service contracts shall set forth all ofthe obligations and duties of the service contract holder, such as the dutyto protect against any further damage and the requirement for certainservice and maintenance.
16. Motor vehicle extended service contracts shall state clearlywhether or not the service contract provides for or excludes consequentialdamages or preexisting conditions.
Requirements for sale of contracts--dealers not to be used as frontingcompanies--required contract contents.
385.206. 1. No person shall directly sell, offer for sale, orsolicit the sale of a motor vehicle extended service contract to aconsumer, other than the following:
(1) A dealer;
(2) A manufacturer of motor vehicles, as defined in section 301.010,RSMo;
(3) A federally insured depository institution;
(4) A lender licensed and defined under sections 367.100 to 367.215,RSMo; or
(5) An administrator, provider, manufacturer, or person working inconcert with an administrator, provider, or manufacturer marketing orselling a motor vehicle extended service contract demonstrating financialresponsibility as set forth in section 385.202.
2. No administrator or provider shall use a dealer as a frontingcompany, and no dealer shall act as a fronting company. For purposes ofthis subsection, "fronting company" means a dealer that authorizes athird-party administrator or provider to use its name or business to evadeor circumvent the provisions of subsection 1 of this section.
3. Motor vehicle extended service contracts issued, sold, or offeredfor sale in this state shall be written in clear, understandable language,and the entire contract shall be printed or typed in easy-to-read type andconspicuously disclose the requirements in this section, as applicable.
4. Motor vehicle extended service contracts insured under areimbursement insurance policy under subsection 3 of section 385.202 shallcontain a statement in substantially the following form: "Obligations ofthe provider under this service contract are guaranteed under a servicecontract reimbursement insurance policy. If the provider fails to pay orprovide service on a claim within sixty days after proof of loss has beenfiled, the contract holder is entitled to make a claim directly against theinsurance company." A claim against the provider also shall include aclaim for return of the unearned provider fee. The motor vehicle extendedservice contract also shall state conspicuously the name and address of theinsurer.
5. Motor vehicle extended service contracts not insured under areimbursement insurance policy pursuant to subsection 3 of section 385.202shall contain a statement in substantially the following form:"Obligations of the provider under this service contract are backed only bythe full faith and credit of the provider (issuer) and are not guaranteedunder a service contract reimbursement insurance policy." A claim againstthe provider also shall include a claim for return of the unearned providerfee. The motor vehicle extended service contract also shall stateconspicuously the name and address of the provider.
6. Motor vehicle extended service contracts shall identify anyadministrator, the provider obligated to perform the service under thecontract, the motor vehicle extended service contract seller, and theservice contract holder to the extent that the name and address of theservice contract holder has been furnished by the service contract holder.
7. Motor vehicle extended service contracts shall state conspicuouslythe total purchase price and the terms under which the motor vehicleextended service contract is sold. The purchase price is not required tobe preprinted on the motor vehicle extended service contract and may benegotiated at the time of sale with the service contract holder.
8. If prior approval of repair work is required, the motor vehicleextended service contracts shall state conspicuously the procedure forobtaining prior approval and for making a claim, including a toll-freetelephone number for claim service and a procedure for obtaining emergencyrepairs performed outside of normal business hours.
9. Motor vehicle extended service contracts shall state conspicuouslythe existence of any deductible amount.
10. Motor vehicle extended service contracts shall specify themerchandise and services to be provided and any limitations, exceptions,and exclusions.
11. Motor vehicle extended service contracts shall state theconditions upon which the use of nonoriginal manufacturer's parts, orsubstitute service, may be allowed. Conditions stated shall comply withapplicable state and federal laws.
12. Motor vehicle extended service contracts shall state any terms,restrictions, or conditions governing the transferability of the motorvehicle extended service contract.
13. Motor vehicle extended service contracts shall state the terms,restrictions, or conditions governing termination of the service contractby the service contract holder. The provider of the motor vehicle extendedservice contract shall mail a written notice to the contract holder withinfifteen days of the date of termination.
14. Motor vehicle extended service contracts shall require everyprovider to permit the service contract holder to return the contractwithin at least twenty business days of mailing date of the motor vehicleextended service contract or within at least ten days if the servicecontract is delivered at the time of sale or within a longer time periodpermitted under the contract. If no claim has been made under thecontract, the contract is void and the provider shall refund to thecontract holder the full purchase price of the contract. A ten percentpenalty per month shall be added to a refund that is not paid within thirtydays of return of the contract to the provider. The applicable free-looktime periods on service contracts shall apply only to the original servicecontract purchaser.
15. Motor vehicle extended service contracts shall set forth all ofthe obligations and duties of the service contract holder, such as the dutyto protect against any further damage and the requirement for certainservice and maintenance.
16. Motor vehicle extended service contracts shall state clearlywhether or not the service contract provides for or excludes consequentialdamages or preexisting conditions.
