Oklahoma § 36-6656 - Vehicle protection product warranty requirements Incidental costs

§ 36-6656. Vehicle protection product warranty requirements Incidental costs

A. Any vehicle protection product shall not be sold or offered

for sale in this state unless the warranty:

1. States, “The obligations of the warrantor to the warranty

holder are guaranteed under a warranty reimbursement insurance

policy”, if the warrantor elects to meet its financial

responsibility obligations under paragraph 1 of Section 6 of this

act, or states, “The obligations of the warrantor under this

Oklahoma Statutes - Title 36. Insurance

warranty are backed by the full faith and credit of the warrantor”,

if the warrantor elects to meet its financial responsibility

obligations under paragraph 2 of Section 6 of this act;

2. States that in the event a warranty holder must make a claim

against a party other than the warranty reimbursement insurance

policy issuer, the warranty holder is entitled to make a direct

claim against the insurer upon the failure of the warrantor to pay

any claim or meet any obligation under the terms of the warranty

within sixty (60) days after proof of loss has been filed with the

warrantor, if the warrantor elects to meet its financial

responsibility obligations under paragraph 1 of Section 6 of this

act;

3. States the name and address of the issuer of the warranty

reimbursement insurance policy, and this information need not be

preprinted on the warranty form, but may be added to or stamped on

the warranty, if the warrantor elects to meet its financial

responsibility obligations under paragraph 1 of Section 6 of this

act;

4. Identifies the warrantor, the seller, and the warranty

holder;

5. Sets forth the total product purchase price and the terms

under which it is to be paid; however, the purchase price is not

required to be preprinted on the vehicle protection product warranty

and may be negotiated with the consumer at the time of sale;

6. Sets forth the procedure for making a claim, including a

telephone number;

7. Specifies 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;

8. Sets forth all of the obligations and duties of the 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;

9. Sets forth any terms, restrictions, or conditions governing

transferability and cancellation of the warranty, if any; and

10. Contains a disclosure that reads substantially as follows:

“This agreement is a product warranty and is not insurance.”

B. 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 warranty holder.

Added by Laws 2008, c. 353, § 8, eff. Jan. 1, 2009.