Journal of the Senate, Regular Session of the Seventy-Sixth Legislature of the State of Texas, Volume 4 Page: 3,392
3319-4267 p. ; 24 cm.View a full description of this legislative document.
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than the 20th day after the date the service contract was mailed to the service contract
holder or, if the service contract is delivered to the service contract holder at the time
of sale, not later than the 10th day after the date of delivery. A service contract holder
may void the service contract at a later time as permitted by the service contract.
(b) If a contract holder returns a service contract under Subsection (a) of this
section and a claim has not been made under the service contract before its return to the
provider, the service contract is void and the provider shall refund to the service
contract holder or credit to the account of the service contract holder the full purchase
price of the service contract. The right provided by this section to void the service
contract is not transferable and applies only to the original service contract purchaser.
If a service contract is voided under this section and the provider does not pay the
refund or credit the service contract holder's account before the 46th day after the date
of the return of the service contract to the provider, the provider is liable to the contract
holder for a penalty in an amount not to exceed 10 percent of the amount outstanding
per month.
Sec. 12. LIMITATIONS ON PROVIDER NAME. (a) A provider may not use:
(1) in its name the words insurance, casualty, surety, mutual, or any other
words descriptive of the insurance, casualty, or surety business:
(2) a name deceptively similar to the name or description of any insurance or
surety corporation or
(3) a name deceptively similar to the name of any other provider.
(b) A provider may use the word "guaranty" or a similar word.
(c) This section does not apply to a provider that, before September 1, 1999, used
a word prohibited under this section in its name, but that provider must include in each
of its service contracts a statement in substantially the following form: "This
agreement is not an insurance contract."
Sec. 13. PROHIBITED ACTS. (a) A provider, or a provider's representative,
may not, in the provider's service contracts or literature:
(1) make, permit, or cause to be made any false or misleading statement; or
(2) deliberately omit a material statement that would be considered
misleading if omitted.
(b) A person, including a bank, savings and loan association, lending institution,
manufacturer, or seller of any product, may not require the purchase of a service
contract as a condition of a loan or the sale of any property.
Sec. 14. ENFORCEMENT. (a) On a finding that a ground for disciplinary action
exists under one or more provisions of this article, the commissioner may impose
appropriate administrative sanctions, including an administrative penalty as provided
by Article 9100, Revised Statutes. An administrative penalty imposed under this
section may not exceed $500 per violation or $10,000 in the aggregate for all violations
of a similar nature.
(b) A disciplinary action taken under this article is subject to Section 17(d),
Article 9100, Revised Statutes.
(c) The commissioner may bring an action for injunctive proceedings under
Section 18, Article 9100, Revised Statutes, for a threatened or existing violation of this
article or the commissioner's orders or rules adopted under this article and may also
bring an action for civil penalties as provided by that section. A civil penalty assessed
under this subsection may not exceed $2,500 per violation or $50,000 in the aggregate
for all violations of a similar nature.3392
76th Legislature - Regular Session
81st Day
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Texas. Legislature. Senate. Journal of the Senate, Regular Session of the Seventy-Sixth Legislature of the State of Texas, Volume 4, legislative document, 1999; (https://texashistory.unt.edu/ark:/67531/metapth123798/m1/78/: accessed May 26, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting UNT Libraries Government Documents Department.