41-6207. PROHIBITED ACTS. (1) A motor vehicle service contract provider may not use in its name, contracts or literature:

(a) Any of the words "insurance," "casualty," "surety," "mutual" or any other words descriptive of the insurance, casualty or surety business; or

(b) A name deceptively similar to the name or description of any insurance or surety corporation, or any other motor vehicle service contract provider.

(2) A motor vehicle service contract provider, its representative or any other person may not make, permit or allow to be made any false, deceptive or misleading statement, or may not deliberately omit any material statement that would be considered misleading if omitted, in connection with the sale, offer to sell or advertisement of a motor vehicle service contract.

(3) It shall be unlawful for any company to directly or indirectly represent in any manner, whether by written solicitation, advertisement or telemarketing, a false, deceptive or misleading statement with regard to:

(a) Such company’s affiliation with a motor vehicle manufacturer, recreational vehicle manufacturer or dealer;

(b) Such company’s possession of information regarding a motor vehicle owner’s current motor vehicle manufacturer’s or recreational vehicle manufacturer’s original equipment warranty;

(c) All indications that such company’s records show that a motor vehicle or recreational vehicle owner’s current motor vehicle manufacturer’s or recreational vehicle manufacturer’s original equipment warranty is nearing or past expiration;

(d) A requirement that such motor vehicle or recreational vehicle owner register for a new motor vehicle service contract with such company to maintain coverage under the motor vehicle or recreational vehicle owner’s current service contract or manufacturer’s original equipment warranty.

History:

[41-6207, added 2018, ch. 116, sec. 2, p. 245.]