Section 407.1200

Title XXVI TRADE AND COMMERCE

Chapter 407

Effective - 01 Jan 2007, 2 histories, see footnote   (history) 

  407.1200.  Definitions. — As used in sections 407.1200 to 407.1227, the following terms shall mean:

  (1) "Administrator", the person who is responsible for the administration of the service contracts or the service contracts plan and who is responsible for any filings required by sections 407.1200 to 407.1227;

  (2) "Consumer", a natural person who buys other than for purposes of resale any motor vehicle that is distributed in commerce and that is normally used for personal, family, or household purposes and not for business or research purposes;

  (3) "Director", the director of the department of insurance;

  (4) "Maintenance agreement", a contract of limited duration that provides for scheduled maintenance only;

  (5) "Manufacturer", a person that:

  (a) Manufactures or produces the property and sells the property under its own name or label;

  (b) Is a wholly owned subsidiary of the person who manufactures or produces the property;

  (c) Is a corporation which owns one hundred percent of the person who manufactures or produces the property;

  (d) Does not manufacture or produce the property, but the property is sold under its trade name label;

  (e) Manufactures or produces the property and the property is sold under the trade name or label of another person; or

  (f) Does not manufacture or produce the property but, pursuant to a written contract, licenses the use of its trade name or label to another person that sells the property under the licensor's trade name or label;

  (6) "Mechanical breakdown insurance", a policy, contract, or agreement issued by an authorized insurer that provides for the repair, replacement, or maintenance of a motor vehicle or indemnification for repair, replacement, or service, for the operational or structural failure of a motor vehicle due to a defect in materials or workmanship or to normal wear and tear;

  (7) "Motor vehicle extended service contract" or "service contract", a contract or agreement for a separately stated consideration or for a specific duration to perform the repair, replacement, or maintenance of a motor vehicle or indemnification for repair, replacement, or maintenance, for the operational or structural failure due to a defect in materials, workmanship, or normal wear and tear, with or without additional provision for incidental payment of indemnity under limited circumstances, including, but not limited to, towing, rental, and emergency road service, but does not include mechanical breakdown insurance or maintenance agreements;

  (8) "Nonoriginal manufacturer's parts", replacement parts not made for or by the original manufacturer of the property, commonly referred to as "after market parts";

  (9) "Person", an individual, partnership, corporation, incorporated or unincorporated association, joint stock company, reciprocal, syndicate, or any similar entity or combination of entities acting in concert;

  (10) "Premium", the consideration paid to an insurer for a reimbursement insurance policy;

  (11) "Provider", a person who administers, issues, makes, provides, sells, or offers to sell a motor vehicle extended service contract, or who is contractually obligated to provide service under a motor vehicle extended service contract such as sellers, administrators, and other intermediaries;

  (12) "Provider fee", the consideration paid for a service contract in excess of the premium;

  (13) "Reimbursement insurance policy", a policy of insurance issued to a provider and pursuant to which the insurer agrees, for the benefit of the service contract holders, to discharge all of the obligations and liabilities of the provider under the terms of the service contracts in the event of nonperformance by the provider. All obligations and liabilities include, but are not limited to, failure of the provider to perform under the service contract and the return of the unearned provider fee in the event of the provider's unwillingness or inability to reimburse the unearned provider fee in the event of termination of a service contract;

  (14) "Service contract holder" or "contract holder", a person who is the purchaser or holder of a service contract;

  (15) "Warranty", a warranty made solely by the manufacturer, importer, or seller of property or services without charge, that is not negotiated or separated from the sale of the product and is incidental to the sale of the product, that guarantees indemnity for defective parts, mechanical or electrical breakdown, labor, or other remedial measures, such as repair or replacement of the property or repetition of services.

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(L. 2004 S.B. 1233, et al.)

Effective 1-1-07