19 Miss. Code. R. 4-4.04 - Cancellation

A. Cancellation by Service Contract Holder

1. Cancellation by a Service Contract Holder shall require the Service Contract Provider to permit the Service Contract Holder to return the vehicle service contract within twenty (20) days of the date the vehicle service contract was mailed to the Service Contract Holder, within ten (10) days of delivery if the vehicle service contract was delivered to the Service Contract Holder at the time of sale, or within a longer time period permitted under the vehicle service contract. Upon return of the vehicle service contract to the Service Contract Provider within the applicable time period, if no claim has been made under the vehicle service contract prior to its return to the Service Contract Provider, the vehicle service contract will be voided, and the Service Contract Provider will refund to the Service Contract Holder, or credit to the account of the Service Contract Holder, the full purchase price of the vehicle service contract. The right to void the vehicle service contract provided in this subsection is not transferrable, applies only to the original Service Contract Holder, and is allowed only when no claim has been made prior to its return to the Service Contract Provider. A ten percent (10%) penalty per month shall be added to a refund that is not paid or credited within forty-five (45) days after return of the vehicle service contract to the Service Contract Provider.

2. Subsequent to the time period specified in subsection (1), or if a claim has been made under the vehicle service contract within that time period, a Service Contract Holder may cancel the vehicle service contract, and the Service Contract Provider shall refund to the Service Contract Holder one hundred percent (100%) of the unearned pro rata purchase price of the vehicle service contract, less the amount of any claims paid. A reasonable administrative fee may be charged by the Service Contract Provider not to exceed ten percent (10%) of the gross service contract provider fee paid by the Service Contract Holder.

B Cancellation by Service Contract Provider

1. Cancellation by the Service Contract Provider shall only occur in instances of nonpayment of the provider fee, a material misrepresentation by the Service Contract Holder to the Service Contract Provider, or a substantial breach of duties by the Service Contract Holder relating to the covered product or its use.

2. In the event of cancellation by a Service Contract Provider for reason other than nonpayment of the provider fee, the Service Contract Provider shall refund to the Service Contract Holder one hundred percent (100%) of the unearned pro rata purchase price of the vehicle service contract, less the amount of any claims paid. A reasonable administrative fee may be charged by the Service Contract Provider not to exceed ten percent (10%) of the gross provider fee paid by the Service Contract Holder.

Notes

19 Miss. Code. R. 4-4.04

Miss. Code Ann. § 83-65-101, et seq. (Rev. 2011).

Adopted 8/16/2017