Missouri Laws 385.300 – Definitions
As used in sections 385.300 to 385.320, the following terms mean:
(1) “Administrator”, the person who is responsible for the handling and adjudication of claims under the product service agreements;
Terms Used In Missouri Laws 385.300
- Contract: A legal written agreement that becomes binding when signed.
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- following: when used by way of reference to any section of the statutes, mean the section next preceding or next following that in which the reference is made, unless some other section is expressly designated in the reference. See Missouri Laws 1.020
- 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
- Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
- Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
- person: may extend and be applied to bodies politic and corporate, and to partnerships and other unincorporated associations. See Missouri Laws 1.020
- Property: includes real and personal property. See Missouri Laws 1.020
- State: when applied to any of the United States, includes the District of Columbia and the territories, and the words "United States" includes such district and territories. See Missouri Laws 1.020
(2) “Consumer”, 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;
(3) “Contract holder”, a person who is the purchaser or holder of a service contract;
(4) “Director”, the director of the department of commerce and insurance;
(5) “Maintenance agreement”, a contract of limited duration that provides for scheduled maintenance only;
(6) “Manufacturer”, any of the following:
(a) A person who manufactures or produces the property and sells the property under the person’s own name or label;
(b) A subsidiary or affiliate of the person who manufacturers or produces the property;
(c) A person who owns one hundred percent of the entity that manufactures or produces the property;
(d) A person that does not manufacture or produce the property, but the property is sold under its trade name label;
(e) A person who manufactures or produces the property and the property is sold under the trade name or label of another person;
(f) A person who does not manufacture or produce the property but, under a written contract, licenses the use of its trade name or label to another person who sells the property under the licensor’s trade name or label;
(7) “Nonoriginal manufacturer’s parts”, replacement parts not made for or by the original manufacturer of the property, commonly referred to as after-market parts;
(8) “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;
(9) “Premium”, the consideration paid to an insurer for a reimbursement insurance policy;
(10) “Property”, all forms of property;
(11) “Provider”, a person who is contractually obligated to the service contract holder under the terms of a service contract;
(12) “Provider fee”, the consideration paid for a service contract, if any, by a service contract holder;
(13) “Reimbursement insurance policy”, a policy of insurance issued to a provider and under 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”, a contract for a specific duration and consideration to perform the repair, replacement, or maintenance of property or indemnification for repair, replacement, or maintenance, for the operational or structural failure of any residential or other property 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, unavailability of parts, obsolescence, food spoilage, rental, and shipping. Service contracts may provide for the repair, replacement or maintenance of property for damage resulting from power surges or accidental damage. Service contract providers and administrators are not deemed to be engaged in the business of insurance in this state;
(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.