2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 14. Unfair Trade Practices and Consumer Protection › Part 13. Service Contracts -- Vehicle Theft Protection Products › 30-14-1305. Required disclosure -- vehicle theft protection product warranties

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:
(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."
History: En. Sec. 4, Ch. 525, L. 2023.