30-14-1305. Required disclosure — vehicle theft protection product warranties. (1) Vehicle theft protection product warranties offered, issued, made, proposed to be made, or administered in this state must be written, printed, or typed in clear, understandable language that is easy to read and must disclose the following, as applicable:

Terms Used In Montana Code 30-14-1305

  • Administrator: means the person who is responsible for the administration of service contracts. See Montana Code 30-14-1301
  • Contract: A legal written agreement that becomes binding when signed.
  • Fraud: Intentional deception resulting in injury to another.
  • Incidental costs: means expenses specified in a vehicle theft protection product warranty that are incurred by the vehicle theft protection product warranty holder due to the failure of a vehicle theft protection product to perform as provided in the contract. See Montana Code 30-14-1301
  • Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
  • Reimbursement insurance policy: means a policy of insurance issued to a provider to either provide reimbursement to the provider under the terms of the insured service contracts issued or sold by the provider or, in the event of the provider's nonperformance, to pay on behalf of the provider all covered contractual obligations incurred by the provider under the terms of the insured service contracts issued or sold by the provider. See Montana Code 30-14-1301
  • State: when applied to the different parts of the United States, includes the District of Columbia and the territories. See Montana Code 1-1-201
  • Vehicle theft protection product: means a device or system that:

    (i)is installed on or applied to a motor vehicle;

    (ii)is designed to prevent loss or damage to a motor vehicle from theft; and

    (iii)includes a vehicle theft protection product warranty. See Montana Code 30-14-1301

  • Vehicle theft protection product warranty: means a written agreement by a warrantor that provides that if the vehicle theft protection product fails to prevent loss or damage to a motor vehicle from theft, then the warrantor will pay to or on behalf of the vehicle theft protection product warranty holder specified incidental costs as a result of the failure of the vehicle theft protection product to perform pursuant to the terms of the written agreement. See Montana Code 30-14-1301
  • warranty holder: means the person who is the purchaser of a vehicle theft protection product and the holder of a vehicle theft protection product warranty. See Montana Code 30-14-1301

(a)the name and address of the warrantor, the seller of the vehicle theft protection product, and the vehicle theft protection product warranty holder;

(b)the total purchase price of the vehicle theft protection product and the terms under which it is to be paid, however, the purchase price is not required to be preprinted on the vehicle theft protection product warranty and may be negotiated with the consumer at the time of sale;

(c)the procedure for making a claim, including a telephone number for the warrantor or administrator responsible for processing the claim;

(d)the payments or performance to be provided under the warranty, including payments for incidental costs, the manner of calculation or determination of payments or performance, and any limitations, exceptions, or exclusions. Incidental costs may be reimbursed under the provisions of the warranty in either a fixed amount specified in the warranty or sales agreement or by the use of a formula itemizing specific incidental costs incurred by the vehicle theft protection product warranty holder.

(e)the obligations and duties of the vehicle theft protection product warranty holder, such as the duty to protect against any further damage to the vehicle, the obligation to notify the warrantor in advance of any repair, or other similar requirements, if any;

(f)any terms, restrictions, or conditions governing transferability and cancellation of the warranty, if any. A warrantor may only cancel a vehicle theft protection product warranty if the vehicle theft protection product warranty holder does any of the following:

(i)fails to pay for the vehicle theft protection product;

(ii)makes a material misrepresentation to the seller of the vehicle theft protection product or to the warrantor;

(iii)commits fraud related to the purchase of the vehicle theft protection product, registration of the vehicle theft protection product warranty, or a claim made under the vehicle theft protection product warranty;

(iv)substantially breaches the vehicle theft protection product warranty holder’s duties under the warranty;

(v)fails to make required payments on the vehicle so that the vehicle is repossessed; and

(vi)damages the vehicle in such a way so that the vehicle is considered a total loss.

(2)A vehicle theft protection product warranty that is insured by a reimbursement insurance policy pursuant to 30-14-1302(2)(a) must contain the following items:

(a)a statement that is in a form identical or similar to the following: “This contract is not insurance and is not subject to the insurance laws of this state”;

(b)that the obligations of the warrantor are insured under a reimbursement insurance policy;

(c)that if a warrantor fails to perform or make a payment due under the terms of the warranty within 60 days after the vehicle theft protection product warranty holder requests performance or payment pursuant to the terms of the warranty, the vehicle theft protection product warranty holder may request performance or payment directly from the warrantor’s reimbursement insurance policy insurer; and

(d)the name, address, and telephone number of the warrantor’s reimbursement insurance policy insurer.

(3)Vehicle theft protection product warranties not insured under a reimbursement insurance policy pursuant to 30-14-1302(2)(a) must contain a statement that is in a form identical or similar to the following: “The obligations of the warrantor under this warranty are backed by the full faith and credit of the warrantor.”

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