omvic chapter 9
Extended warranties must be backed or guaranteed financially to ensure their viability.
List two methods by which this backing can be provided. - ANS-The seller of the
warranty has provided security to the
Compensation Fund (for the extended warranties that it supplies) in the form of an
irrevocable letter of credit in the following amounts:
If a dealer wishes to offer their own uninsured extended warranty, theymust provide to
the Compensation Fund an irrevocable letter of credit in the amount of - ANS-$100,000
Provide three pieces of information related to the coverage offered by the warranty that
must be included in the warranty contract. - ANS-A description of the components
covered by the warranty that is sufficient to identify them with certainty and if the
warranty is related to the manufacturer's warranty, a description indicating how the
warranty extends the manufacturer's warranty.
The commencement date and end date of the warranty, expressed by way of calendar
date, kilometres the vehicle has been driven, or a combination of both ,The maximum
individual claim limits, if any. The maximum total liability, if any. The amount of the
deductible, if any. The sale price of the warranty, including an itemized list of all fees or
costs that must be paid at the time of purchase or afterwards. The obligations of the
warranty holder under both the warranty and the manufacturer's warranty, if applicable
Whether the warranty is transferable to another owner or lessee of the
Dealers must send all payments and documents detailing the contract to the warranty
company within: - ANS-Seven days
True or False: Service plans must be backed by an insurance company - ANS-False
Contracts for service plans must disclose in a clear, comprehensible and prominent
manner: - ANS-The goods and services provided under the plan and a specific
description for each item listed. All restrictions, limitations and conditions. The locations
at which the vehicle can be serviced. Information stating whether or not the service plan
is transferable to another owner or lessee.
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