§ 4-90-512 - Form of service contracts. - Arkansas Statutes

4-90-512. Form of service contracts.

No motor vehicle service contract may be issued which:

(1) Is in any respect in violation of or does not comply with this subchapter, any specifically applicable provision of the Arkansas Insurance Code, or any applicable rule of the department;

(2) Contains, or incorporates by reference when such incorporation is otherwise permissible, any inconsistent, ambiguous, illusory, or misleading clauses, or exceptions and conditions which deceptively affect the risk purported to be assumed in the general coverage of the service agreement;

(3) Has any title, heading, or other indication of its provisions which is misleading;

(4) Is printed or otherwise reproduced in such manner as to render any material provision of the form substantially illegible;

(5) Contains any provision which is unconscionable or which encourages misrepresentation;

(6) Contains any provision which makes it difficult to determine the actual provider issuing the form; or

(7) Contains any provision for reducing claim payments due to depreciation of parts.