(a) No vehicle protection product may be sold or offered for sale in this state unless the vehicle protection product warranty clearly states the terms and conditions governing the cancellation of the sale and warranty, if any.
(b) The warrantor may only cancel the warranty if the warranty holder does any of the following:
(1) Fails to pay for the vehicle protection product.
(2) Makes a material misrepresentation to the seller or warrantor.
(3) Commits fraud related to the purchase of the vehicle protection product, registration of the warranty, or a claim made under the warranty.
(4) Substantially breaches the warranty holder's duties under the warranty.
(c) A warrantor canceling a warranty shall mail written notice of cancellation to the warranty holder at the last address of the warranty holder in the warrantor's records at least 30 days prior to the effective date of the cancellation. The notice shall state the effective date of the cancellation and the reason for cancellation.
Last modified: May 3, 2021