A service contract issued, sold or offered for sale in this state shall meet the following requirements:

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(1) The service contract shall be written in clear, understandable language.

(2) The service contract shall identify the obligor and the service contract seller.

(3) If prior approval of repair work is required, the service contract shall 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.

(4) The service contract shall conspicuously state the existence of any deductible amount.

(5) The service contract shall specify the merchandise covered, services to be provided and any limitations, exceptions or exclusions.

(6) The service contract shall state any terms, restrictions or conditions governing the transferability of the service contract by the service contract holder.

(7) The service contract shall state the terms, restrictions or conditions governing termination of the service contract by the service contract holder. [Formerly 646.269]