Indiana Code 27-1-43.2-7. “Service contract”
(1) that is effective for a specified period; and
Terms Used In Indiana Code 27-1-43.2-7
- ancillary protection product: includes the following:
Indiana Code 27-1-43.2-1
- Commissioner: means the "insurance commissioner" of this state. See Indiana Code 27-1-2-3
- Contract: A legal written agreement that becomes binding when signed.
- Indemnification: In general, a collateral contract or assurance under which one person agrees to secure another person against either anticipated financial losses or potential adverse legal consequences. Source: FDIC
- Insurance: means a contract of insurance or an agreement by which one (1) party, for a consideration, promises to pay money or its equivalent or to do an act valuable to the insured upon the destruction, loss or injury of something in which the other party has a pecuniary interest, or in consideration of a price paid, adequate to the risk, becomes security to the other against loss by certain specified risks; to grant indemnity or security against loss for a consideration. See Indiana Code 27-1-2-3
- insurer: means a company, firm, partnership, association, order, society or system making any kind or kinds of insurance and shall include associations operating as Lloyds, reciprocal or inter-insurers, or individual underwriters. See Indiana Code 27-1-2-3
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
- motor vehicle: has the meaning set forth in IC 9-13-2-105(a). See Indiana Code 27-1-43.2-4
- provider: means a person who is contractually obligated to a holder under a service contract. See Indiana Code 27-1-43.2-5
- service contract: means an agreement:
Indiana Code 27-1-43.2-7
(A) receives consideration that is separate from the lease or purchase price of a motor vehicle; and
(B) agrees to provide the performance, or indemnification for the cost of performance, of the repair, replacement, or maintenance of a motor vehicle related to the operational or structural failure of the motor vehicle due to a defect in materials or workmanship, accidental damage, normal wear and tear, or damage resulting from a power surge or interruption.
A service contract may also provide for the incidental payment of indemnity under limited circumstances, including indemnity for towing, temporary replacement motor vehicle rental, and emergency road service.
(b) The repair, replacement, or maintenance described in subsection (a)(2)(B) includes the following:
(1) Repair or replacement of tires or wheels on a motor vehicle damaged as a result of road hazards.
(2) 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.
(3) Repair of chips or cracks in, or replacement of, motor vehicle windshields as a result of damage caused by road hazards.
(4) Replacement of an inoperable, lost, or stolen motor vehicle key or keyfob.
(5) Payment of specified incidental costs resulting from failure of an ancillary protection product to perform as specified.
(6) Payment related to other products and services approved by the commissioner and consistent with this chapter.
(c) A service contract may not include coverage:
(1) for the:
(A) repair of damage to;
(B) replacement of; or
(C) repair of damage to and replacement of;
the interior surfaces of a vehicle; or
(2) for the:
(A) repair of damage to;
(B) replacement of; or
(C) repair of damage to and replacement of;
the exterior paint or finish of a vehicle.
However, coverage described in subdivision (1) or (2) may be offered in connection with the sale of an ancillary protection product as defined in section 1 of this chapter.
(d) “Service contract” does not include an insurance policy that:
(1) is issued by an insurer authorized to engage in the insurance business in Indiana; and
(2) provides coverage for repair, replacement, or maintenance described in subsection (a)(2)(B).
As added by P.L.129-2014, SEC.10.