AUTO DEALERS-WARRANTY DISCLOSE
What changed between versions
The legal citation for the new section was changed from the Motor Vehicle Franchise Act to the Motor Vehicle Retail Installment Sales Act.
New requirements mandate that sellers provide a written disclosure summarizing specific costs like deductibles, coverage caps, and non-covered services when selling third-party warranties.
New provisions clarify that all claim approvals and coverage determinations for third-party warranties are made solely by the warranty provider, not the seller.
New exemptions were added stating that sellers do not violate the law if the warranty provider denies a claim or makes errors in describing coverage terms.
The section number for the new warranty disclosure provision was changed from 6.5 to 9.04.
A new definition was added for 'third-party motor vehicle warranty' to include extended service contracts and vehicle protection plans provided by entities other than the vehicle manufacturer.