§ 4247. Definitions As used in this subchapter: (1) “Commissioner” means the Commissioner of Financial Regulation. (2) “Consumer” means a natural person who buys other than for purposes of resale any tangible personal property that is distributed in commerce and that is normally used for personal, family, or household purposes, and not for commercial purposes. […]
§ 4248. Registration required (a) All providers of service contracts issued, sold, or covering property located in this State shall file a registration with the Commissioner on a form prescribed by the Commissioner. Such registrations shall be renewed every three years. Providers shall submit a $600.00 fee at the time of registration and at the […]
§ 4249. Proof of financial stability (a) In order to ensure the performance of a provider’s obligations to its contract holders, each provider shall continue to possess and provide the Commissioner the following documents as proof of financial stability: (1)(A) a surety bond, securities of the type eligible for deposit by an authorized insurer in […]
§ 4250. Examinations For the purpose of determining the provider’s financial stability and protecting consumer interests, the Commissioner may conduct an examination of a provider concerning service contracts sold in this State to enable the Commissioner to determine compliance or noncompliance with this subchapter. The expenses of examinations shall be paid to the State by […]
§ 4251. Consumer disclosure requirements (a) Each service contract subject to this subchapter shall be written in clear, understandable language and easily read type and disclose the following: (1) The identity of the provider and the service contract seller; (2) The total purchase price of the contract, stated separately from the price of the goods […]
§ 4252. Obligations of providers and insurers (a) A provider is considered to be the agent of an insurer that issued a service contract reimbursement insurance policy and therefore is required to act as a fiduciary in regard to premiums, return of premiums, or other sums of money received. However, nothing in this subchapter shall […]
§ 4253. Prohibited acts (a) A provider shall not use in its name, contracts or literature: (1) the words “insurance,” “casualty,” “surety,” “mutual”; or (2) a name deceptively similar to the name or description of any insurance or surety corporation or any other provider licensed to do business in this State. (b) No provider or […]
§ 4254. Prohibited terms No service contract issued, sold, or covering property located in this State shall provide: (1) that the consumer is not a party to the contract; (2) that the provider has no liability to the consumer; (3) that the consumer does not have the right to bring an action to enforce the […]
§ 4255. Penalties; enforcement (a) The Commissioner, after proper notice and opportunity for hearing in accordance with this State’s Administrative Procedure Act, may take action to enforce the provisions of this subchapter and may: (1) revoke or suspend the registration of the service contract provider; (2) order the provider to cease and desist from further […]
§ 4256. Exemption for certain delivery service maintenance and repair contracts The provisions of this subchapter shall not apply to service contracts with a duration of one year or less where the provider also has an existing agreement to supply liquid fuel used in the course of normal operation of the property subject to the […]
