Agreement disclosures
This law lists what must be written in a vehicle value protection agreement so the buyer knows what they are getting. The agreement must clearly show the names and addresses of everyone involved, the cost, the rules for coverage, and how to cancel. If a person cancels during a trial period and got no benefits, they get their money back. If canceled later, any refund is calculated based on how much time was left. The company must give at least five days notice before canceling, unless the person did not pay or lied on the agreement.
407.2070. Agreement disclosures. — s shall disclose in writing and in clear, understandable language that is easy to read the following:
(1) The name and address of the , , and , if any;
(2) The terms of the vehicle value protection agreement including, but not limited to, the purchase price to be paid by the contract holder, if any, the requirements for eligibility, the conditions of coverage, and any ;
(3) A statement that the vehicle value protection agreement may be by the contract holder within a as specified in the vehicle value protection agreement and that in such event the contract holder shall be entitled to a full refund of the purchase price paid by the contract holder, if any, so long as no s have been provided;
(4) The procedure the contract holder shall follow, if any, to obtain a benefit under the terms and conditions of the vehicle value protection agreement, including, if applicable, a telephone number or website and address where the contract holder may apply for a benefit;
(5) A statement that indicates whether the vehicle value protection agreement may be cancelled after the free-look period and the conditions under which it may be cancelled, including the procedures for requesting any refund of the paid by the contract holder;
(6) If the vehicle value protection agreement is cancellable after the free-look period, a statement that any refund of the unearned purchase price of the vehicle value protection agreement shall be calculated on a basis;
(7) A statement that any , terms of the , or terms of the related motor vehicle sale or shall not be upon the purchase of the vehicle value protection agreement;
(8) The terms, , or conditions governing of the vehicle value protection agreement before the or expiration date of the vehicle value protection agreement by either the provider or the contract holder. The provider of the vehicle value protection agreement shall mail a written notice to the contract holder at the last known address of the contract holder contained in the records of the provider at least five days before cancellation by the provider. Prior notice shall not be required if the reason for cancellation is , a by the contract holder to the provider or administrator, or a by the contract holder relating to the covered product or its use. The notice shall state the of the cancellation and the reason for the cancellation. If a vehicle value protection agreement is cancelled by the provider for a reason other than nonpayment of the provider fee, the provider shall refund to the contract holder one hundred percent of the unearned pro rata provider fee paid by the contract holder, if any. If coverage under the vehicle value protection agreement continues after a , any refund may deduct paid. A reasonable fee may be charged by the provider up to seventy-five dollars; and
(9) A statement that the agreement is not an insurance contract.
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Source & history notes
(L. 2023 S.B. 398)
Legal information, not legal advice. Always confirm with the official source at revisor.mo.gov.