(a) Any home protection contract shall be noncancellable during the initial term for which it was issued, except for:
(1) Nonpayment of protection contract fees;
(2) Fraud or misrepresentation of facts material to the issuance of such contract; or
(3) Contracts providing coverage prior to the time that an interest in the residential property to which it attaches is sold, upon the contingency that such sale does not occur.
(b) Nothing in this section establishes a right of the contract holder to renewal of any contract.
(Amended by Stats. 1981, Ch. 820, Sec. 15.)