Vehicle Service Contracts

Vehicle Service Contract

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Marketing

Guidelines

TABLE OF CONTENTS

Compliance with Laws and Regulations......................……..........……….............  3

Prohibited Practices…………………………..………...........................................  3

Advertising Requirements..…………………………………...........……............... 5

Sale Requirements………………………………..…………...........……............... 6

Billing Authorizations……………………………..…………...........……..............7

Refunds………………………………………..…………...........……...................  8

Consumer Complaints……………………………..…………...........……............. 8

Privacy Standards………………………………..…………...........……................ 9

Introduction

Each Seller of vehicle service contracts administered by AmTrust North America, Inc. and its affiliates shall be required to adhere to the following guidelines in their marketing and sale of vehicle service contracts:

1. Compliance with Laws and Regulations

1.0.1  Seller shall make themselves aware of and operate in accordance with all applicable laws and regulations of the Federal Trade Commission, the Federal Communications Commission, the Federal Reserve Board, the United States Postal Service and all other applicable federal, state and local regulations and laws.  Seller should be aware of the fact that many states have laws and/or regulations unique to the vehicle service contract industry and shall comply with all of these laws.

1.0.2  Seller shall conduct due diligence to ensure that the companies with whom they do business are also complying with the law.  Seller shall contractually require that their business partners comply with all applicable laws and regulations.

1.0.3  Seller shall promptly investigate any claims that their business partners are not complying with law.

1.0.4  Seller shall take affirmative steps to insure that its business partners are complying with all applicable laws.

1.0.5  Seller shall meet all state licensing, registration and marketing requirements applicable for the states in which they conduct business.

1.0.6  Seller shall be aware of and comply with all applicable state laws governing refunds and/or three day right to cancel laws.

1. Prohibited Practices

2.0.1  Seller shall not:

1. use in their company name, advertisements, sales solicitations, websites or any description of their products, words such as “warranty,” “dealer,” “dealership,” “manufacturer” (including actual manufacturer’s name; e.g. “Ford”) or any other words that falsely imply that the company is somehow associated with the manufacturer of the motor vehicle.  
2. refer to a manufacturer or dealer without also disclosing in a clear and conspicuous manner that they are not affiliated with those entities or state that it is an independent company selling vehicle service contracts.
3. Use any words, phrases, formats or verbiage that have the capacity to mislead a consumer into believing that the Seller is associated with the dealer, manufacturer, insurance company, administrator or finance company.
4. use in their company name, advertisements, sales solicitations, websites or any description of their products, words such as “insurance,” “surety,” “mutual” or any other words descriptive of the insurance, casualty or surety business, or a name deceptively similar to the name or description of any insurance or surety corporation.
5. create a false and misleading sense of urgency in their marketing materials.  
6. not use language that indicates that a consumer’s warranty is expiring unless they possess accurate information that establishes that the consumer’s current warranty will expire within a reasonable time in the near future.
7. make an offer that gives a false and misleading sense of exclusivity unless it is true.
8. indicate that an offer is for “a limited time” or that the offer “will expire” or that the price quoted that day will not be honored in the future unless the member materially changes or refuses to honor the original offer after the stated time period ends and be able to substantiate a reasonable limited time for the offer.
9. not use the phrase “bumper to bumper” or similar terms.
10. sell a consumer duplicative coverage of a warranty or service contract that the consumer already possesses.
11. sell personal information that the consumer has provided during a sale to other companies for marketing purposes without the consumer’s knowledge or choice.
12. use consumers’ personal information obtained from a state department of motor vehicles for any unauthorized use in violation of 18 U.S.C. 2721 et seq. or any similar state laws.  
13. represent that the contracts are financed and shall make no reference to interest rates or charges.
14. use consumers’ vehicle identification numbers.
15. use high pressure sales tactics.
16. take advantage of the inability of the consumer reasonably to protect the consumer’s interests because of the consumer’s age, mental infirmities, ignorance, illiteracy, or inability to understand the language of an agreement or to speak or read English.
17. sell a service contract for more than the consumer’s vehicle is valued.
18. Use, or permit to be used, prerecorded messages.

1. Advertising^[1] Requirements

3.0.1  All of Seller’s advertisements shall contain accurate information and shall comply with all of the Prohibited Practices set forth above.

3.0.2  Seller shall substantiate in writing all claims prior to making the claims.

3.0.3  Seller shall require that all of its advertising partners comply with these guidelines.  Seller shall take affirmative steps to insure that the advertisements that its business partners use comply with these guidelines.