16 Tex. Admin. Code § 77.70 - Responsibilities of Providers and Administrators
(a) The provider must clearly and
conspicuously identify itself on all written service contracts and, on all
written advertising materials that are used by the provider, its
administrator(s), or its seller(s).
(b) The provider and/or any administrator
appointed by the provider must provide service contract holders with a
notification that meets all of the following requirements.
(1) The notification must provide the name,
mailing address, and telephone number of the department.
(2) The notification must contain a statement
that unresolved complaints concerning providers and administrators or questions
concerning the regulation of service contract providers and administrators may
be addressed to the department.
(3)
The notification must be included on all written service contacts. The
notification may be stamped on the contract or printed on a separate sheet and
stapled to the contract.
(c) The provider and/or any administrator
appointed by the provider must provide service contract holders with the
provider's complaint resolution procedures.
(d) The provider and/or any administrator
appointed by the provider must disclose the following information to service
contract holders:
(1) the specific contract
provisions and required disclosures in accordance with Texas Occupations Code
§§
1304.156 and
1304.157;
(2) the procedures and timeframes for a
service contract holder to cancel a service contract in accordance with Texas
Occupations Code §
1304.1581;
(3) the procedures and timeframes for a
provider to refund the purchase price of the service contract and pay any
applicable penalty to the service contract holder in accordance with Texas
Occupations Code §
1304.1581;
and
(4) the conditions in which the
provider may cancel a service contract and issue a refund in accordance with
Texas Occupations Code §
1304.159.
(e) As part of the disclosures
required under subsection (d), a provider and/or any administrator appointed by
the provider who sells or issues service contracts described under Texas
Occupations Code §
1304.003(a)(2)(B)
(referred herein as "identity recovery service contracts") must disclose the
following information:
(1) the person or
persons who are covered under the identity recovery service contract;
(2) the price of the identity recovery
service contract separate from the purchase price of the automobile and any
other products or services that are financed with the vehicle;
(3) the term of the identity recovery service
contract; and
(4) any conditions
that may change the stated term of the identity recovery service contract,
including if the identity recovery service contract holder:
(A) pays off the automobile early;
(B) makes late payments or defaults on the
payments on the automobile;
(C)
refinances the automobile; or
(D)
sells or transfers title to the automobile.
(f) As part of the disclosures required under
subsection (d), a provider and/or any administrator appointed by the provider
who sells or issues service contracts described under Texas Occupations Code
§
1304.003(a)(2)(C)
(referred herein as "depreciation benefit service contracts") must disclose the
following information:
(1) the names and
locations of the participating dealers who are part of the depreciation benefit
optional member program;
(2) the
amount of the credit that will be paid or the method of calculation that will
be used to pay the credit toward the purchase of a replacement
vehicle;
(3) a statement that
purchase of the service contract is not required as a condition of approval of
a loan for the purchase of a vehicle;
(4) a statement that a service contract may
not be offered by a dealer who requires a loan for the purchase of a vehicle to
be financed exclusively with the dealer; and
(5) a statement that the service contract may
be cancelled by the service contract holder and the procedures and timeframes
for a service contract holder to cancel the service contract and obtain a
refund as specified under subsections (d)(2) and (d)(3).
(g) If not provided by the seller at the time
of sale, the provider and/or any administrator appointed by the provider must
provide a copy of the service contract to the service contract holder within a
reasonable amount of time after the date of purchase that still allows the
service contract holder the opportunity to cancel the contract and receive a
full refund.
(h) If not provided by
the seller at the time of sale, the provider and/or any administrator appointed
by the provider must provide a receipt for or other written evidence of the
purchase of a service contract to the service contract holder within a
reasonable amount of time after the date of purchase that still allows the
service contract holder the opportunity to cancel the contract and receive a
full refund.
(i) A provider shall
report to the department within 30 days any change in information required by
§77.20 and §77.21.
(j) An
administrator shall report to the department within 30 days any change in
information required by §77.22 and §77.23.
(k) Upon notification by the department, the
provider and/or any administrator appointed by the provider shall allow the
department to audit records required to be maintained by Texas Occupations Code
Chapter 1304. These records include copies of the service contracts marketed,
sold, administered or issued in this state.
Notes
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