(a) Providers shall provide purchasers of a service contract with:

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Terms Used In Hawaii Revised Statutes 481X-6

  • Administrator: means a person appointed or designated by a provider who administers service contracts and service contract plans on behalf of the provider and subject to the requirements of this chapter. See Hawaii Revised Statutes 481X-2
  • Contract: A legal written agreement that becomes binding when signed.
  • Contract holder: means a person who is the purchaser or holder of a service contract. See Hawaii Revised Statutes 481X-2
  • Contractual liability insurance policy: means a policy of insurance that is issued to a provider, insures the provider's service contracts, and may provide:

    (1) Reimbursement to the provider for sums that the provider is legally obligated to pay under the insured service contract; or

    (2) The service that the provider is legally obligated to perform under the insured service contract. See Hawaii Revised Statutes 481X-2

  • Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.
  • Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
  • Provider: means a person who is contractually obligated to the service contract holder under the terms of the service contract. See Hawaii Revised Statutes 481X-2
  • Service contract: means a contract or agreement for a separately stated consideration and a specific duration, to perform or indemnify the repair, replacement, or maintenance of property for operational or structural failure due either to a defect in materials or artisanship, or to normal wear and tear, with or without additional provision for incidental payment or indemnity under limited circumstances, including but not limited to towing, rental, and emergency road service. See Hawaii Revised Statutes 481X-2
(1) A receipt for or other written evidence of the purchase of the service contract that shall be provided to the service contract holder;
(2) A copy of the service contract that shall be provided within a reasonable period of time from the date of purchase; and
(3) Except for offers or sales of service contracts by telephone, mail, or electronic means, a written copy of the basic terms and conditions of the service contract to be made available to the purchaser where the purchaser is physically present at the point of sale.
(b) Service contracts shall be written in clear, understandable language, and shall be printed or typed in a typeface and format that is easy to read.
(c) All service contracts shall:

(1) State the name and address of:

(A) The provider; and
(B) The administrator of the contract, if different from the provider;
(2) Identify:

(A) The service contract seller; and
(B) The contract holder, to the extent that the contract holder has furnished the contract seller, administrator, or provider with that information;
(3) The terms of the sale, including the purchase price;
(4) The procedure the contract holder must follow to obtain service;
(5) Any deductible amount that applies;
(6) The specific merchandise and services to be provided, and any limitations, exceptions, or exclusions;
(7) Where the contract covers a motor vehicle, whether the use of nonoriginal manufacturer’s parts is allowed;
(8) Any restrictions governing the transferability of the service contract that apply;
(9) The terms, restrictions, or conditions governing the return or cancellation of the service contract by either the provider or contract holder prior to the contract’s termination or expiration date;
(10) The obligations and duties of the contract holder, such as the duty to protect against any further damage, or to follow owner’s manual instructions; and
(11) Any provision for, or exclusion of consequential damages or preexisting conditions that applies.

The information under paragraphs (1) and (2) shall not be required to be preprinted on the service contract and may be added to the service contract at the time of sale. The purchase price under paragraph (3) shall not be required to be preprinted on the service contract and may be negotiated with the contract holder at the time of sale.

(d) Service contracts insured under a contractual liability insurance policy shall include the name and address of the insurer and contain a statement substantially similar to the following:

“Obligations of the provider under this service contract are insured under a service contract contractual liability insurance policy.”

(e) Service contracts not insured under a contractual liability insurance policy shall contain a statement substantially similar to the following:

“Obligations of the provider under this service contract are backed by the full faith and credit of the provider.”

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