481X-2 Definitions. As used in this chapter:

"Administrator" means a person appointed or designated by a provider who administers service contracts and service contract plans on behalf of the provider and subject to the requirements of this chapter.

"Commissioner" means the insurance commissioner.

"Consumer" means a natural person who buys, other than for purposes of resale, any tangible personal property that is distributed in commerce and that is normally used for personal, family, or household purposes, and not for business or research purposes.

"Contract holder" means a person who is the purchaser or holder of a service contract.

"Contractual liability insurance policy" means a policy of insurance that is issued to a provider, insures the provider's service contracts, and may provide:

(1) Reimbursement to the provider for sums that the provider is legally obligated to pay under the insured service contract; or

(2) The service that the provider is legally obligated to perform under the insured service contract.

"Maintenance agreement" means a contract of limited duration that provides scheduled maintenance only.

"Nonoriginal manufacturer's parts" means replacement parts not made for or by the original manufacturer of the property, commonly referred to as "after market parts".

"Person" means an individual, partnership, limited liability company, corporation, incorporated or unincorporated association, joint stock company, reciprocal, syndicate, or any similar entity or combination of entities acting in concert.

"Premium" means the consideration paid to an insurer for a contractual liability insurance policy.

"Provider" means a person who is contractually obligated to the service contract holder under the terms of the service contract.

"Provider fee" means the consideration paid for a service contract.

"Road hazard" [Definition effective July 1, 2020.] means a hazard that is encountered while driving a motor vehicle, which may include but not be limited to potholes, rocks, wood debris, metal parts, glass, plastic, curbs, or composite scraps.

"Service contract" [Definition effective until June 30, 2020. For definition effective July 1, 2020, see below.] means a contract or agreement for a separately stated consideration and a specific duration, to perform or indemnify the repair, replacement, or maintenance of property for operational or structural failure due either to a defect in materials or artisanship, or to normal wear and tear, with or without additional provision for incidental payment or indemnity under limited circumstances, including but not limited to towing, rental, and emergency road service. Service contracts may provide for the repair, replacement, or maintenance of property damaged by power surges, or accidentally damaged during handling.

"Service contract" [Definition effective July 1, 2020. For definition effective until June 30, 2020, see above.] means a contract or agreement for a separately stated consideration and a specific duration:

(1) To perform or indemnify the repair, replacement, or maintenance of property for operational or structural failure due either to a defect in materials or artisanship, or to normal wear and tear, with or without additional provision for incidental payment or indemnity under limited circumstances, including but not limited to towing, rental, and emergency road service; or

(2) For performance of one or more of the following services:

(A) The repair or replacement of tires or wheels on a motor vehicle damaged as a result of coming into contact with a road hazard;

(B) The removal of dents, dings, or creases on a motor vehicle that can be repaired using the process of paintless dent removal without affecting the existing paint finish and without replacing vehicle body panels, sanding, bonding, or painting;

(C) The repair of chips or cracks in a motor vehicle windshield or the replacement of a motor vehicle windshield as a result of damage caused by a road hazard;

(D) The replacement of a motor vehicle key or key-fob in the event that the key or key-fob becomes inoperable, lost, or stolen; or

(E) Other services which may be approved by the commissioner, if not inconsistent with other provisions of this chapter.

Service contracts may provide for the repair, replacement, or maintenance of property damaged by power surges, or accidentally damaged during handling.

"Warranty" means a warranty made without consideration, solely by the manufacturer, importer, or seller of property or services, that is not negotiated or separated from the sale of the product and is incidental to the sale of the product, that provides repair or replacement for defective parts, mechanical or electrical breakdown, labor, or other remedial measures. [L 2000, c 221, pt of 2; am L 2006, c 154, 44; am L 2019, c 195, 1]

 

 

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