The following provisions shall apply to the sale of motor vehicle service contracts in the state:
(1)  A motor vehicle service contract may not be issued, sold or offered for sale in this state unless the contract contains a statement in substantially the following form: "Obligations of the motor vehicle service contract provider under this motor vehicle service contract are guaranteed under a service contract liability policy. Should the motor vehicle service contract provider fail to pay or provide service on any claim within sixty (60) days after proof of loss has been filed, the motor vehicle service contract holder is entitled to make a claim directly against the insurance company." The motor vehicle service contract shall also conspicuously state the name and address and a toll-free claim service number of the insurer.

Terms Used In Idaho Code 41-6205

  • Contract: A legal written agreement that becomes binding when signed.
  • Motor vehicle service contract: means a contract or agreement given for separately stated consideration that undertakes to perform or provide repair or replacement service, or indemnification for such service, for the operational or structural failure of a motor vehicle due to defect in materials or workmanship or normal wear and tear but shall not include mechanical breakdown insurance. See Idaho Code 41-6203
  • Motor vehicle service contract holder: means a person who purchases a motor vehicle service contract or is a permitted transferee;
Idaho Code 41-6203
  • Motor vehicle service contract provider: means a person who is contractually obligated to a motor vehicle service contract holder under the terms of a motor vehicle service contract;
    • Idaho Code 41-6203
  • State: when applied to the different parts of the United States, includes the District of Columbia and the territories; and the words "United States" may include the District of Columbia and territories. See Idaho Code 73-114
    • (2)  The motor vehicle service contract must identify the motor vehicle service contract provider, the seller and the motor vehicle service contract holder.
    (3)  The motor vehicle service contract must conspicuously state the total purchase price of the motor vehicle service contract.
    (4)  If prior approval of repair work is required, the motor vehicle service contract must conspicuously state the procedure for obtaining prior approval and for making a claim, including a toll-free telephone number for claim service and a procedure for obtaining reimbursement for emergency repairs performed outside of normal business hours.
    (5)  The motor vehicle service contract must conspicuously state the existence of any deductible amount.
    (6)  The motor vehicle service contract must specify the merchandise and services to be provided and any limitations, exceptions or exclusions. Any preexisting conditions clause must specifically state which preexisting conditions are excluded from coverage.
    (7)  The motor vehicle service contract must state any terms, restrictions or conditions governing the transferability of the service contract.
    (8)  The motor vehicle service contract must state the terms, restrictions or conditions governing cancellation of the service contract by either the motor vehicle service contract holder or motor vehicle service contract provider.
    (9)  A motor vehicle service contract may not be issued, sold or offered for sale in this state unless the contract contains a statement in substantially the following form: "Coverage afforded under this motor vehicle service contract is not guaranteed by the Idaho insurance guaranty association."
    (10) No motor vehicle service contract may be issued, sold or offered in this state unless the service contract conspicuously states that the motor vehicle service contract holder is allowed to cancel the service contract:
    (a)  Within thirty (30) days of its purchase if no claim has been made and shall receive a full refund of the service contract retail price, less any cancellation fee stated in the service contract not exceeding fifty dollars ($50.00); or
    (b)  At any other time and shall receive a pro rata refund of the service contract retail price for the unexpired term of the service contract, based on the number of the lapsed months, miles or such other measure that is clearly disclosed in the service contract, less any cancellation fees stated in the service contract not exceeding fifty dollars ($50.00).