Consumer Warranty Law: 20.4.7 Other Grounds for Denial of Coverage
Service contract coverage may be denied because, even though coverage was purchased, the product was never eligible for the service contract policy in the first place. For example, the vehicle involved is excluded from the category of vehicles for which coverage is available. Then the consumer has a UDAP claim against the party selling the contract. The contract owner may also be liable for the acts of its agent. While there is not case law in this area regarding service contracts, analogous precedent can be found concerning the sale of credit insurance or other lines of insurance.