2007 Minnesota Statutes

59C.07 DISCLOSURE TO WARRANTY HOLDER.
    A vehicle protection product warranty must 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 section 59C.05, subdivision 2, or states "The obligations of the
warrantor under this warranty are backed by the full faith and credit of the warrantor" if the
warrantor elects to meet its financial responsibility obligations under section 59C.05, subdivision
3 ;
    (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 60 days after proof of loss has been filed with
the warrantor, if the warrantor elects to meet its financial responsibility obligations under section
59C.05, subdivision 2;
    (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 section 59C.05, subdivision 2;
    (4) identifies the warrantor, the seller, and the warranty holder;
    (5) sets forth the total 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 expressed as 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, 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."
History: 2007 c 57 art 3 s 27