25.2.A merchant required to hold a permit under paragraph d of section 321 of the Act is exempt from the obligations prescribed by sections 260.7, 260.8, 260.9 and 260.13 of the Act where any contract of additional warranty he makes is the object of a contract of security, separate from any other contract, by a legal person authorized to act as an insurer in Québec and holding a licence issued by the Autorité des marchés financiers and such contract of security provides that:
(a) the security covers the term of any contract that is its object up to a minimum of $1,500 per contract, without a deductible being required of the consumer other than any prescribed by the contract of additional warranty;
(b) the contract may be terminated by either party only by means of a notice in writing of not less than 15 days sent to the president of the Office de la protection du consommateur;
(c) notwithstanding the expiry or cancellation of the contract, the legal person authorized to act as an insurer will assume any obligation arising from contracts of additional warranty made during the term of the contract of security or up to its cancellation.
O.C. 1978-85, s. 2; O.C. 1150-89, s. 1; O.C. 495-2010, ss. 9 and 10.