2023 Laws of Puerto Rico › TITLE TWENTY-SIX - Insurance (§§ 101 — 10377) › Subtitle 1 - Insurance Generally (§§ 101 — 4513) › Chapter 21 - Automobile Clubs or Associations and Service Contracts (§§ 2101 — 2134) › Subchapter II - Service Contracts (§§ 2123 — 2134) › § 2128 - Required disclosures—Service contracts

(1) Every service contract that is issued, sold or offered for sale in Puerto Rico shall be written in clear and intelligible language, and the entire contact shall be legibly printed or typewritten, and shall clearly establish the requirements provided in this section, as applicable.
(2) Every service contract insured under a reimbursement insurance policy pursuant to § 2126(3)(a) of this title, shall contain a statement that substantially bears the following information: “The obligations of the provider under this service contract are guaranteed under a reimbursement insurance policy. If the provider does not pay, or does not provide a service claimed within sixty (60) days following the notice of the claim, the holder of the contract shall be entitled to file a claim directly with the insurer that offers said policy.” Under a reimbursement insurance policy, any payment not accrued by the provider may be claimed from the insurer. The service contract shall also visibly state the name and address of the insurer.
(3) Every service contract not insured under a reimbursement insurance policy pursuant to § 2126(3)(a) of this title, shall contain a statement that substantially has the following information: “The obligations of the provider under this service contract are guaranteed solely by the full faith and credit of the provider.”
(4) By virtue of the service contract, the return of unearned fees may be claimed from the provider. The service contract shall also visibly state the name and address of the provider. The service contract shall identify the person that will provide the service under the contract, the vendor of the service contract, and the holder of the contract, if known.
(5) Every service contract shall visibly state the total price and the terms under which it is sold.
(6) If prior approval is required to obtain services, the service contract shall clearly and simply establish the procedure to obtain said prior approval and to file a claim, including a toll-free telephone number for the service of claims, and, in the case of motor vehicle service contracts, a procedure to obtain emergency repairs outside of regular business hours.
(7) Every service contract shall clearly and visibly state whether there is a deductible, and if so, what the deductible amount is.
(8) Every service contract shall specify the products and services that shall be provided, as well as any applicable limitations, exceptions or exclusions.
(9) Every motor vehicle service contract shall state the conditions under which the use of non-original replacements shall be allowed.
(10) Every service contract shall state any terms, restrictions or conditions that govern its transfer to third parties.
(11) Every service contract shall indicate the terms, restrictions or conditions that govern the termination or cancellation thereof, either by the holder of the contract or the provider. In the last case, the provider shall send a written notice to the holder of the contract by mail, at least fifteen (15) days prior to the termination or cancellation of the service contract. Said notice shall establish the effective date of the cancellation or termination and the reason therefor. Notwithstanding the above, the service contract may provide for the immediate cancellation or termination in cases of false or fraudulent representations that are material for the issuing of the contract, or that the provider in good faith had not issued the service contract, if the true facts had been made known to him/her.
(12) Every service contract shall have a provision that will allow the holder of the contract to return the service contract within a term of not less than ten (10) days from the delivery of the service contract to the holder of the contract, or, if the service contract were remitted by mail, within a term of not less than twenty (20) days from the date of said remittance, or in a longer period allowed by the contract. Provided [that] the holder of the contract exercises such right, and has not presented any claim under the service contract, it shall be null and the provider will reimburse or credit the complete fee corresponding to the service contract, to the holder of the contract. A penalty of ten percent (10%) a month shall be imposed on said fee, that shall be added to any reimbursement or credit required by this section that is not paid within thirty (30) days following the date that the holder returns the service contract to the provider.
(13) Every service contract shall establish all the obligations and duties of the holder of the contract, such as the obligation to protect the property against any additional damage and the obligation to give maintenance and service to it.
(14) Every service contract shall clearly establish if it excludes subsequent damages or pre-existing conditions.
History —Ins. Code, added as § 21.280 on Sept. 8, 2000, No. 392, § 3.