| I.__Service contracts must state the terms, restrictions or |
| conditions governing cancellation of the service contract |
| prior to the termination or expiration date of the service |
| contract by either the provider or the service contract |
| holder.__The provider of the service contract shall mail a |
| written notice to the service contract holder at the last |
| known address of the service contract holder contained in |
| the records of the provider at least 5 days prior to |
| cancellation by the provider.__Prior notice is not required |
| if the reason for cancellation is nonpayment of the provider |
| fee, a material misrepresentation by the service contract |
| holder to the provider or a substantial breach of duties by |
| the service contract holder relating to the covered product |
| or its use.__The notice must state the effective date of the |
| cancellation and the reason for the cancellation. |