Cancelling a service contract: five statutes set different windows, start dates and fee caps

A service contract's cancellation rights come from state law and from the contract itself. Five statutes set return windows from 10 to 30 days, start the clock at purchase, mailing or delivery, and cap fees at different levels. This page puts them side by side.

The short answer

The first window: 30 days in Alaska (after delivery; 10 days if delivered at sale), the District of Columbia (from mailing or delivery) and Idaho (from purchase); 20 days from mailing, or 10 days from delivery at sale, in Maine. New Hampshire's section states no day count. ¹ ² ⁴ ⁵ ⁶
Fee caps after the window: Alaska 7.5 percent of the unearned fee; the District and Maine 10 percent; Idaho $50; New Hampshire the lesser of 10 percent of the price or $75. ¹ ² ⁴ ⁵ ⁶
Late refunds: Alaska adds a penalty of 10 percent of the fee for each month a refund (first-window or later) stays unpaid after 45 days; Maine adds 10% of the fee outstanding to a first-window refund not paid or credited within 45 days; the District adds "a 10% penalty per month" to a first-window refund on the same timing, without stating a base. ¹ ² ⁵

Why look at five statutes

Our guides on vehicle service contracts and home warranties compare other states. This page adds five statutes' cancellation sections: Alaska (vehicle contracts), the District of Columbia, Idaho (vehicle contracts), Maine and New Hampshire. They are laid side by side because the same words, such as "30 days," start counting at different moments and carry different consequences.

The first window: return for a full refund

The first window, by statute
Statute	How long and from when	Condition	What comes back
Alaska, AS 21.59.170(a) (vehicle contracts)	Not later than 30 days after the contract was delivered, or not later than 10 days after delivery if delivered at the time of sale, or longer if the contract says so.¹	No claim made before the return.	The full provider fee, refunded or credited not later than 45 days after return, with a 10 percent monthly penalty if late.¹
District of Columbia, § 31-2351.03(g)(1)	Within 30 days of the date the contract was mailed to the holder, or of delivery if delivered at the time of sale, or longer if the contract says so.²	No claim made before the return.	The full purchase price, refunded or credited; a 10% per month penalty if not paid or credited within 45 days after return.²
Idaho, § 41-6205(10)(a) (vehicle contracts)	Within 30 days of purchase.⁴	No claim has been made.	A full refund of the retail price, less any cancellation fee stated in the contract not exceeding $50.⁴
Maine, 24-A M.R.S. § 7103(7)(A)	Within 20 days of the date the contract was mailed to the holder, or within 10 days of delivery if delivered at the time of sale, or longer if the contract says so.⁵	No claim made before the return.	The full provider fee and any sales tax refund state law requires; a monthly penalty of 10% of the fee outstanding if not paid or credited within 45 days after return.⁵
New Hampshire, RSA 415-C:7, II(f)	The section does not state a number of days for a full-refund window. Section 415-C:6 requires the contract to state its cancellation terms.⁶ ⁷	Not stated in the section.	For a contract of 12 months or more, unearned contract fees must be refunded; fees are earned pro rata over the contract length.⁶

The windows start at purchase (Idaho), mailing (Maine, District of Columbia) or delivery (Alaska, and Maine and the District when delivered at sale), so the relevant date differs by statute.

After the first window, or after a claim

Later cancellation, by statute
Statute	Refund	Fee the provider may charge
Alaska	The prorated unearned provider fee, less claims paid, refunded or credited not later than 45 days after return; the same monthly penalty applies if late.¹	A reasonable cancellation fee not exceeding 7.5 percent of the unearned provider fee paid.¹
District of Columbia	100% of the unearned pro rata provider fee, less claims paid.²	A reasonable administrative fee not exceeding 10% of the gross provider fee paid.²
Idaho	A pro rata refund of the retail price for the unexpired term, based on lapsed months, miles or another measure clearly disclosed in the contract.⁴	Any cancellation fee stated in the contract, not exceeding $50.⁴
Maine	100% of the unearned pro rata provider fee, less claims paid.⁵	An administrative fee not exceeding 10% of the provider fee paid.⁵
New Hampshire	Unearned fees refunded on a contract of 12 months or more, earned pro rata.⁶	No more than 10 percent of the contract price or $75, whichever is less, for a contract of any duration; all such fees must be disclosed in the contract.⁶

When the provider cancels

Cancellation by the provider, by statute
Statute	Notice	Refund
Alaska	A provider may cancel only for the six reasons listed in AS 21.59.170(c). It mails written notice at least five days before cancellation, stating the effective date and reason; prior notice is not required for nonpayment, fraud or material misrepresentation.¹	Prorated unearned provider fee, less claims paid, within 45 days, with the monthly penalty if late.¹
District of Columbia	Written notice mailed at least 5 days before cancellation, stating the effective date and reason; not required for nonpayment of the provider fee, material misrepresentation by the holder to the provider, or substantial breach of duties relating to the covered product or its use.³	If the reason is other than nonpayment, 100% of the unearned pro rata provider fee, less claims paid; an administrative fee of no more than 10% of the gross provider fee may be charged.³
Idaho	Section 41-6205(8) requires the contract to state the terms governing cancellation by either the holder or the provider. Section 41-6205(8) sets no notice period.⁴	Not set out in that subsection.
Maine	A written notice mailed at least 15 days before cancellation, stating the effective date and reason.⁵	If the reason is other than nonpayment, 100% of the unearned pro rata provider fee, less claims paid; an administrative fee of no more than 10% may be charged.⁵
New Hampshire	Section 415-C:6 requires the contract to state the terms governing cancellation and termination by either side.⁷	The refund rule in RSA 415-C:7, II(f) applies to "any cancellation" of a contract of 12 months or more.⁶

Which date counts

Each statute above requires the contract to state its cancellation terms. The windows start at purchase, mailing or delivery.

Where this fits our standard

Point 2 of our standard looks at whether cancellation and refund rights are honored against the specific right that applies. This page shows how different those rights can be from statute to statute. The Register describes a method, not a verdict on any company.

How to verify this yourself

Open the sections in references 1 to 7. Each cell in the tables comes from the statute named in its row.
Several of these statutes list further conditions in other subsections that this page does not reproduce.

What this page is not

This is general information about the text of five statutes, not legal advice. Alaska and Idaho rows cover vehicle service contracts only. The page does not say whether any cancellation or refund is valid, and it does not cover other states or other laws such as lending or consumer protection rules. Statutes change; confirm the current text before relying on it.

What to do next

Related guides: Alaska, the District of Columbia, Idaho, Maine and New Hampshire, or return to the home warranty hub.

Last reviewed 7 October 2026. General information from the cited primary sources; not legal advice.