(A) The purpose of this chapter is to create a legal framework within which service contracts may be sold in this State.

(B) This chapter does not apply to:

Terms Used In South Carolina Code 38-78-10

  • Commission: means the part of the premium paid to the producer as compensation for his services. See South Carolina Code 38-1-20
  • Department: means the Department of Insurance of South Carolina. See South Carolina Code 38-1-20
  • insurance: includes annuities. See South Carolina Code 38-1-20
  • Motor vehicle manufacturer: means a person that:

    (a) manufactures or produces motor vehicles and sells motor vehicles under its own name or label;

    (b) is a wholly owned subsidiary of the person who manufactures or produces motor vehicles;

    (c) is a corporation which owns one hundred percent of the person who manufactures or produces motor vehicles;

    (d) does not manufacture or produce motor vehicles, but sells motor vehicles under its trade name label;

    (e) manufactures or produces motor vehicles and sells such motor vehicles under the trade name or label of another person; or

    (f) does not manufacture or produce motor vehicles but, pursuant to a written contract, licenses the use of its trade name or label to another person that sells motor vehicles under the licensor's trade name or label. See South Carolina Code 38-78-20

(1) warranties;

(2) maintenance agreements;

(3) commercial transactions;

(4) warranties, service contracts, or maintenance agreements offered by public utilities on their transmission devices to the extent they are regulated by the Public Service Commission or the Department of Health and Environmental Control;

(5) service contracts sold or offered for sale to persons other than consumers.

(C) Motor vehicle manufacturer‘s service contracts on the motor vehicle manufacturer’s products shall comply with Sections 38-78-50 (A) and (D), to (N), § 38-78-60, and § 38-78-100, as applicable.

(D) The types of agreements referred to in subsection (B) of this section do not have to comply with any provision of the insurance laws of this State.

  Previous section
Next section  
 Chapter 78 Contents