30-14-1301. Definitions. As used in this part, the following definitions apply:

(1)”Administrator” means the person who is responsible for the administration of service contracts.

(2)”Department” means the department of justice provided for in 2-15-2001.

(3)”Incidental costs” means expenses specified in a vehicle theft protection product warranty that are incurred by the vehicle theft protection product warranty holder due to the failure of a vehicle theft protection product to perform as provided in the contract. Incidental costs may include but are not limited to insurance policy deductibles, rental vehicle charges, the difference between the actual value of the stolen vehicle at the time of theft and the cost of a replacement vehicle, sales taxes, registration fees, transaction fees, and mechanical inspection fees. Incidental costs may be reimbursed in either a fixed amount specified in the vehicle theft protection product warranty or by use of a formula itemizing specific incidental costs incurred by the warranty holder.

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

(5)”Provider” means a person who is contractually obligated to the service contract holder or vehicle theft protection product warranty holder under the terms of the service contract or vehicle theft protection product warranty.

(6)”Reimbursement insurance policy” means a policy of insurance issued to a provider to either provide reimbursement to the provider under the terms of the insured service contracts issued or sold by the provider or, in the event of the provider’s nonperformance, to pay on behalf of the provider all covered contractual obligations incurred by the provider under the terms of the insured service contracts issued or sold by the provider.

(7)”Road hazard” means a hazard that is encountered while driving a motor vehicle, including but not limited to potholes, rocks, wood debris, metal parts, glass, plastic, curbs, or composite scraps.

(8)(a) “Service contract” means a contract or agreement for a separately stated consideration for a specific duration to perform the repair, replacement, or maintenance of property or to indemnify for the repair, replacement, or maintenance of property if an operational or structural failure is due to a defect in materials or manufacturing or to normal wear and tear, with or without an additional provision for incidental payment or indemnity under limited circumstances, including but not limited to towing, rental, and emergency road service. A service contract may provide for the repair, replacement, or maintenance of property for damage resulting from power surges or accidental damage from handling.

(b)The term includes a contract or agreement sold for a separately stated consideration for a specific duration that provides for any of the following:

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

(ii)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 sanding, bonding, painting, or replacing a vehicle body panel;

(iii)the repair of small motor vehicle windshield chips or cracks, which may include replacement of the windshield for chips or cracks that cannot be repaired;

(iv)the replacement of one or more motor vehicle keys or key fobs in the event that the key or key fob becomes inoperable, lost, or stolen;

(v)in conjunction with a motor vehicle leased for use, the repair, replacement, or maintenance of property, or indemnification for repair, replacement, or maintenance of property, due to any of the following that result in a lease-end charge or any other charge for damage that is deemed as excess wear and use by a lessor under a motor vehicle lease, provided any payment may not exceed the purchase price of the vehicle:

(A)excess wear and use;

(B)damage for items such as tires, paint cracks or chips, interior stains, rips or scratches, exterior dents or scratches, windshield cracks or chips, missing interior or exterior parts; or

(C)excess mileage; or

(vi)other services that may be approved by the department, if not inconsistent with the provisions of this title.

(c)The term does not include a motor club service as defined in 61-12-301.

(9)”Service contract holder” or “contract holder” means the person who is the purchaser or holder of a service contract.

(10)(a) “Vehicle theft protection product” means a device or system that:

(i)is installed on or applied to a motor vehicle;

(ii)is designed to prevent loss or damage to a motor vehicle from theft; and

(iii)includes a vehicle theft protection product warranty.

(b)The term does not include fuel additives, oil additives, or other chemical products applied to the engine, transmission, or fuel system or to interior or exterior surfaces of a motor vehicle.

(11)”Vehicle theft protection product warranty” means a written agreement by a warrantor that provides that if the vehicle theft protection product fails to prevent loss or damage to a motor vehicle from theft, then the warrantor will pay to or on behalf of the vehicle theft protection product warranty holder specified incidental costs as a result of the failure of the vehicle theft protection product to perform pursuant to the terms of the written agreement.

(12)”Vehicle theft protection product warranty holder” or “warranty holder” means the person who is the purchaser of a vehicle theft protection product and the holder of a vehicle theft protection product warranty.