Title 31A Chapter 6a Section 105

Insurance Code
Service Contracts
Section 105
Prohibited acts.

            

31A-6a-105.   Prohibited acts.

            (1) Except as provided in Subsection 31A-6a-104(2), a service contract provider may not use in its 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 or the service contract provider'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

            (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.

            (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.


Amended by Chapter 274, 2010 General Session