Prepaid contracts: Content; entire agreement; rescission.
1. All forms for a prepaid contract offered or sold in this state must contain:
(a) The names and addresses of the seller, buyer, beneficiary and trustee and of each performer;
(b) A clear and unambiguous statement of the services and property to be supplied and by whom;
(c) The purchase price of each item of supply or service and how payable;
(d) The date and place of execution;
(e) Other reasonable and appropriate provisions as prescribed by the Commissioner by regulation;
(f) The full percentage of the sales commission to be retained by the seller;
(g) The seller’s or his agent’s signature on the original contract and his identification by name and title on any duplicate copy of the contract given to the buyer;
(h) A provision in 14-point type or larger, stating in substance that the buyer is permitted to return the contract within 10 days after its delivery to the buyer and to have the full purchase price or amount paid thereon refunded if the buyer is not satisfied with it for any reason;
(i) In print on its face sheet, in 14-point type or larger, a notice stating, “This is not an insurance contract.”; and
(j) A provision for the return of the net purchase price at any time before the services are performed by the seller.
2. The written contract, when signed, constitutes the entire agreement between the parties relative to its subject matter.
3. If the buyer, pursuant to the provision required by paragraph (h) of subsection 1, returns the contract to the seller at his branch or home office or to the agent through whom it was purchased, the contract is void from the beginning and the parties return to the same position they occupied before the contract was entered into.
Last modified: February 27, 2006