MO HB2401

Allows motor vehicle extended service contracts to be sold by dealers, manufacturers, federally insured depository institutions, licensed lenders, or administrators/providers/manufacturers demonstrating financial responsibility under section 385.202.

Prohibits dealers from acting as "fronting companies" that allow third-party administrators or providers to use the dealer's name to evade or circumvent sales restrictions.

Requires motor vehicle extended service contracts to be written in clear language with conspicuous disclosure of key terms including total purchase price, deductibles, coverage details, limitations, exclusions, and claim procedures.

Mandates contracts insured under reimbursement insurance policies to disclose the insurer's name and address, while uninsured contracts must state obligations are backed only by the provider's full faith and credit.

Requires providers to permit service contract holders to return contracts within at least 20 business days (or 10 days if delivered at sale) for a full refund if no claims are made, with a 10 percent monthly penalty added to refunds not paid within 30 days.