Prohibited acts.

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  • (1) Except as provided in Subsection 31A-6a-104(2), a service contract provider or warrantor may not use in the service contract provider or warrantor's name, a contract, or literature:
    • (a) any of the following words:
      • (i) "insurance";
      • (ii) "casualty";
      • (iii) "surety";
      • (iv) "mutual"; or
      • (v) another word descriptive of the insurance, casualty, or surety business; or
    • (b) a name deceptively similar to the name or description of:
      • (i) an insurance or surety corporation; or
      • (ii) another service contract provider.
  • (2) A service contract provider, a service contract provider's representative, a warrantor, or a warrantor's representative may not:
    • (a) make, permit, or cause to be made a false or misleading statement in connection with the sale, offer to sell, or advertisement of a service contract or vehicle protection product; or
    • (b) deliberately omit a material statement that would be considered misleading if omitted, in connection with the sale, offer to sell, or advertisement of a service contract or vehicle protection product.
  • (3) A bank, savings and loan association, insurance company, or other lending institution may not require the purchase of a service contract as a condition of a loan.
  • (4) Except for a bank, savings and loan association, industrial bank, or credit union, a service contract provider may not sell, or be the obligated party for:
    • (a) a guaranteed asset protection waiver, unless registered with the commissioner under Chapter 6b, Guaranteed Asset Protection Waiver Act;
    • (b) a debt cancellation agreement, unless licensed by the commissioner; or
    • (c) a debt suspension agreement, unless licensed by the commissioner.
  • (5) A warrantor or the warrantor's representative may not:
    • (a) require the purchase of a vehicle protection product as a condition of the financing, lease, or purchase of a motor vehicle; or
    • (b) sell a vehicle protection product to a consumer before providing the consumer, for review, a copy of the vehicle protection product warranty that is filed with the Department of Insurance.




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