385.418. Warranty requirements.
Warranty requirements.
385.418. 1. Every vehicle protection product warranty shall bewritten in clear, understandable language and shall be printed or typed inan easy-to-read point size and font and shall not be issued, sold, oroffered for sale in the state unless the warranty:
(1) States that the obligations of the warrantor to the warrantyholder are guaranteed under a warranty reimbursement insurance policy ifthe warrantor elects to meet its financial responsibility obligations undersubdivision (1) of section 385.412, or states the obligations of thewarrantor under this warranty are backed by the full faith and credit ofthe warrantor if the warrantor elects to meet its financial responsibilityunder subdivision (2) of section 385.412;
(2) States that in the event a warranty holder must make a claimagainst a party other than the warrantor, the warranty holder is entitledto make a direct claim against the warranty reimbursement insurer upon thefailure of the warrantor to pay any claim or meet any obligation under theterms of the warranty within sixty days after proof of loss has been filedwith the warrantor, if the warrantor elects to meet its financialresponsibility obligations under subdivision (1) of section 385.412;
(3) States the name and address of the insurer of the warrantyreimbursement insurance policy, and this information need not be preprintedon the warranty form but may be stamped on the warranty, if the warrantorelects to meet its financial responsibility obligations under subdivision(1) of section 385.412;
(4) Identifies the warrantor, the seller, and the warranty holder;
(5) Sets forth the total purchase price of the vehicle protectionproduct warranty and the terms under which it is to be paid; however, thepurchase price is not required to be preprinted on the vehicle protectionproduct warranty and may be negotiated with the consumer at the time ofsale;
(6) Sets forth the procedure for making a claim, including atelephone number;
(7) States the existence of a deductible amount, if any;
(8) Specifies the payments or performance to be provided under thewarranty including payments for incidental costs, the manner of calculationor determination of payments or performance, and any limitations,exceptions, or exclusions;
(9) Sets forth all of the obligations and duties of the warrantyholder such as the duty to protect against further damage to the vehicle,the obligation to notify the warrantor in advance of any repair, or othersimilar requirements, if any;
(10) Sets forth any terms, restrictions, or conditions governingtransferability of the warranty, if any; and
(11) Contains a disclosure that reads substantially as follows: "Thisagreement is a product warranty and is not insurance.".
2. At the time of sale, the seller or warrantor shall provide to thepurchaser:
(1) A copy of the vehicle protection product warranty; or
(2) A receipt or other written evidence of the purchase of thevehicle protection product and a copy of the warranty within thirty days ofthe date of purchase.
(L. 2008 S.B. 930 & 947)Effective 1-01-09