(a) Each vehicle protection product warranty marketed, sold, offered for sale, issued, made, proposed to be made, or administered in this State shall be written, printed, or typed, in clear, understandable, and easy to read language, and shall disclose the applicable requirements set forth in this section.
Terms Used In Hawaii Revised Statutes 481R-9
- Consumer: means a person in this State who purchases or otherwise possesses a vehicle protection product. See Hawaii Revised Statutes 481R-1
- Reimbursement insurance policy: means a policy of insurance issued to a warrantor to:
(1) Provide reimbursement to the warrantor under the terms of the insured vehicle protection product issued or sold by the warrantor; and
(2) Pay on behalf of the warrantor, in the event of the warrantor's nonperformance, all covered obligations incurred by the warrantor under the terms of the insured vehicle protection product issued or sold by the warrantor. See Hawaii Revised Statutes 481R-1
- Seller: means a person engaged in the business of offering a vehicle protection product for sale to a consumer. See Hawaii Revised Statutes 481R-1
- Vehicle protection product: means a product or system, which includes a written warranty, that is:
(1) Installed or applied to a vehicle; and
(2) Designed to prevent loss or damage to a vehicle from a specific cause. See Hawaii Revised Statutes 481R-1
- Warrantor: means a person named under the terms of a vehicle protection product warranty as the contractual obligor to the consumer. See Hawaii Revised Statutes 481R-1
“Obligations of the warrantor under this vehicle protection product are insured under a reimbursement insurance policy.”
(c) The vehicle protection product warranty shall state the name and address of the insurer and state that if a covered service is not provided by the warrantor before the sixty-first day after the date the consumer provides proof of loss, the consumer may apply for reimbursement directly to the vehicle protection product warrantor’s reimbursement insurance company.
(d) Each vehicle protection product warranty shall state the name, address, and phone number of the warrantor. All warrantors shall report to the department before the thirty-first day after the date of any change in the information required to be provided in this subsection.
(e) Each vehicle protection product warranty shall identify any administrator, if different from the warrantor, the vehicle protection product seller, and the consumer, if the name of the consumer has been provided by the consumer. The identities of those persons shall not be required to be preprinted on the warranty and may be added to the warranty at the time of sale.
(f) Each vehicle protection product warranty shall state the product’s purchase price, or the warrantor’s suggested purchase price, and the terms under which the product is sold. The purchase price shall not be required to be preprinted on the vehicle protection product warranty and may be negotiated with the consumer at the time of sale.
(g) Each vehicle protection product warranty shall:
(1) Specify the products and services to be provided and any limitations, exceptions, or exclusions;
(2) Specify any restrictions governing the transferability of the vehicle protection product;
(3) State the duties of the consumer, including any duty to protect against any further damage and any requirement to follow the warranty’s instructions;
(4) State the name, mailing address, and telephone number of the department; and
(5) Include a statement that unresolved complaints concerning a registered warrantor or questions concerning the regulation of a warrantor may be addressed to the department.
(h) The requirements of subsection (g)(4) and (5) may be stamped on the vehicle protection product warranty.
