Text of section effective on September 01, 2011
- (a) A provider may cancel a service contract by mailing a written notice of cancellation to the service contract holder at the service contract holder's last known address according to the records of the provider. The provider must mail the notice before the fifth day preceding the effective date of the cancellation. The notice must state the effective date of the cancellation and the reason for the cancellation.
(b) The provider is not required to provide prior notice of cancellation if the service contract is canceled because of:
- (1) nonpayment of the consideration for the contract;
- (2) a material misrepresentation by the service contract holder to the provider; or
- (3) a substantial breach of a duty by the service contract holder relating to the covered product or its use.
Added by Acts 2001, 77th Leg., ch. 1421, Sec. 3, eff. June 1, 2003.