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The 192nd General Court of the Commonwealth of Massachusetts

Section 149P: Form and content of service contracts

Section 149P. Service contracts shall be printed in clear and understandable language and shall include: (1) a statement in substantially the following form: ''Obligations of the provider under this service contract are insured under a service contract reimbursement insurance policy'', or for service contracts not insured under a reimbursement insurance policy a statement in substantially the following form: ''Obligations of the provider under this service contract are backed by the full faith and credit of the provider''; (2) the name and address of the insurer, including the reimbursement insurance policy insurer, provider, an administrator if different from the provider, the service contract seller and the service contract holder to the extent that the name of the service contract holder has been furnished by the service contract seller; (3) the total purchase price and the terms under which service contract was sold; (4) the existence of any deductible amount, if applicable; (5) the property and services to be provided and any limitations, exceptions or exclusions, if applicable; (6) any restrictions governing the transferability of the service contract; (7) the terms, restrictions or conditions governing cancellation of the service contract prior to the termination or expiration date of the service contract by either the provider or the service contract holder; provided, however, that the provider of the service contract shall mail a written notice to the contract holder, including the effective date of the cancellation and the reason for the cancellation, at the last known address of the service contract holder contained in the records of the provider at least 5 days prior to cancellation by the provider unless the reason for cancellation is nonpayment of the provider, material misrepresentation or a substantial breach of duties by the service contract holder relating to the covered product or its use; (8) all of the obligations and duties of the service contract holder, such as the duty to protect against any further damage and any requirements to follow owner's manual; and (9) whether or not the service contract provides for any preexisting conditions.