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:
Terms Used In Utah Code 31A-6a-105
Contract: A legal written agreement that becomes binding when signed.
a risk distributing arrangement providing for compensation or replacement for damages or loss through the provision of a service or a benefit in kind;
(ii)
a contract of guaranty or suretyship entered into by the guarantor or surety as a business and not as merely incidental to a business transaction; and
(iii)
a plan in which the risk does not rest upon the person who makes an arrangement, but with a class of persons who have agreed to share the risk. See Utah Code 31A-1-301
insurance company: means a person doing an insurance business as a principal including:
(i)
a fraternal benefit society;
(ii)
an issuer of a gift annuity other than an annuity specified in Subsections 31A-22-1305(2) and (3);
(iii)
a motor club;
(iv)
an employee welfare plan;
(v)
a person purporting or intending to do an insurance business as a principal on that person's own account; and
Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
Service contract: includes any contract or agreement to perform or reimburse the service contract holder for any one or more of the following services:
(i)
the repair or replacement of tires, wheels, or both on a motor vehicle damaged as a result of coming into contact with a road hazard;
(ii)
the removal of dents, dings, or creases on a motor vehicle that can be repaired using the process of paintless dent removal without affecting the existing paint finish and without replacing vehicle body panels, sanding, bonding, or painting;
(iii)
the repair of chips or cracks in or the replacement of a motor vehicle windshield as a result of damage caused by a road hazard, that is primary to the coverage offered by the motor vehicle owner's motor vehicle insurance policy; or
(iv)
the replacement of a motor vehicle key or key-fob if the key or key-fob becomes inoperable, lost, or stolen, except that the replacement of lost or stolen property is limited to only the replacement of a lost or stolen motor vehicle key or key-fob. See Utah Code 31A-6a-101
Service contract provider: means a person who issues, makes, provides, administers, sells or offers to sell a service contract, or who is contractually obligated to provide service under a service contract. See Utah Code 31A-6a-101
Vehicle protection product warranty: means a written agreement by a warrantor that provides that if the vehicle protection product fails to prevent the theft of the motor vehicle, or aid in the recovery of the motor vehicle within a time period specified in the warranty, not exceeding 30 days after the day on which the motor vehicle is reported stolen, the warrantor will reimburse the warranty holder for incidental costs specified in the warranty, not exceeding $5,000, or in a specified fixed amount not exceeding $5,000. See Utah Code 31A-6a-101
Warrantor: means a person who is contractually obligated to the warranty holder under the terms of a vehicle protection product warranty. See Utah Code 31A-6a-101
(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 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.
