Section 21.59.110. Motor vehicle service contract..

   (a) A provider may, for separate or additional consideration, enter into a motor vehicle service contract for a specific duration to
        (1) maintain, service, or repair a motor vehicle for an operational or structural failure due to a defect in materials or workmanship or due to normal wear and tear;
        (2) indemnify for repair, replacement, or maintenance for an operational or structural failure due to a defect in materials or workmanship or normal wear and tear, with or without additional provisions for incidental payment of indemnity for towing, rental, emergency road service, and road hazard protection;
        (3) repair or replace tires or wheels on a motor vehicle damaged as a result of coming into contact with road hazards;
        (4) remove dents, dings, or creases on a motor vehicle that can be repaired using the process of paintless dent removal without affecting the existing paint or finish and without replacing vehicle body panels or requiring sanding, bonding, or painting;
        (5) repair chips or cracks in or replace motor vehicle windshields as a result of damage caused by road hazards; or
        (6) replace a motor vehicle key or key fob if the key or key fob becomes inoperable or is lost or stolen.
   (b) A motor vehicle service contract may not include coverage for the repair of damage to or replacement of the interior surfaces of a vehicle or for the repair or replacement of the exterior paint or finish of a vehicle.
   (c) A motor vehicle service contract marketed, offered for sale, sold, issued, made, or administered in this state must be written, printed, or typed in clear, understandable language, in eight point or larger type, and must include the following:
        (1) the name and address of the provider and an administrator if different from the provider, the service contract seller, and the service contract holder to the extent that the name of the service contract holder has been furnished by the service contract holder; names and addresses of the parties are not required to be preprinted on the motor vehicle service contract and may be added to the motor vehicle service contract at the time of sale;
        (2) the provider fee and the terms of the motor vehicle service contract; the provider fee is not required to be preprinted on the service contract and may be negotiated at the time of sale;
        (3) the applicable deductible amount, if any;
        (4) a description of the materials and services to be provided and applicable limitations, exceptions, or exclusions, including whether the service contract provides for or excludes consequential damages or preexisting conditions;
        (5) a description of the obligations and duties of the service contract holder;
        (6) whether the use of nonoriginal manufacturer's parts is allowed;
        (7) restrictions on the transferability of the service contract, if applicable; and
        (8) the terms for return and cancellation of the service contract.

Authorities

21.59.010;21.59.120;21.59.140;21.59.150;21.59.160;21.59.200;21.59.290

Notes

References

AS 21.59.010 Applicability.
AS 21.59.120 Exemptions.
AS 21.59.140 Provider license; notice to licensee.
AS 21.59.150 Provider license renewal, expiration, reinstatement.
AS 21.59.160 Administrator registration.
AS 21.59.200 Examination, investigations, enforcement, and penalties.
AS 21.59.290 Definitions.

History

(Sec. 5 ch 78 SLA 2014)