20-1095. Definitions

In this article, unless the context otherwise requires:

1. " Consumer" means a buyer other than for purposes of resale of any consumer product, any person to whom the product is transferred during the duration of an implied or written warranty or service contract applicable to the product and any other person who is entitled by the terms of the warranty or service contract or under applicable federal or state law to enforce against the warrantor or service company the obligations of the warranty or service contract. Consumer also means the buyer, owner, lessor or seller of residential property.

2. " Consumer product" means any tangible personal property that is distributed in commerce and that is normally used solely for personal, family or household purposes including any such property intended to be attached to or installed in any real property without regard to whether it is so attached or installed.

3. " Home warranty or home protection contract" means a service contract as defined in paragraph 7, subdivision (b), item (i) of this section.

4. " Mechanical reimbursement insurance" means an insurance policy issued to an obligor to either provide reimbursement to the obligor under the terms of the insured service contracts issued or sold by the obligor or, in the event of the obligor's nonperformance, to pay on behalf of the obligor all covered contractual obligations incurred by the obligor under the terms of the insured service contracts issued or sold by the obligor.

5. " Residential property" means a house, townhouse, condominium or other habitable structure that is used principally as a residence.

6. " Service company" or " obligor" means any person that is contractually obligated to the contract holder under the terms of the service contract. Service company does not include a service contract administration or seller if the person is not contractually obligated to the contract holder under the terms of the service contract.

7. " Service contract" :

(a) Means a written contract or agreement for a separately stated consideration for any duration to perform the repair, replacement or maintenance of a consumer product or indemnification for repair, replacement or maintenance for the operational or structural failure of a consumer product due to a defect in materials, workmanship, accidental damage from handling, a power surge or interruption or normal wear and tear, with or without additional provisions for incidental payment of indemnity under limited circumstances, including towing, rental and emergency road service and road hazard protection.

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

(i) The service, maintenance or repair, including replacement, of all or any part of structural components, appliances, electrical, plumbing, heating, cooling or air conditioning systems of residential property or indemnification for the service, maintenance, repair or replacement.

(ii) The repair or replacement of tires or wheels on a motor vehicle damaged as a result of coming into contact with road hazards including potholes, rocks, wood debris, metal parts, glass, plastic, curbs or composite scraps.

(iii) 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 replacing vehicle body panels, sanding, bonding or painting.

(iv) The replacement of a motor vehicle key or key fob in the event that the key or key fob becomes inoperable or is lost or stolen.

(v) Other services or products approved by the director.

8. " Service contract administrator" means a person who is responsible for the administration of the service contracts or the service contracts plan or who is responsible for any submission required under this article.

9. " Warranty" means:

(a) Any written affirmation by a manufacturer or seller of fact or written promise made in connection with the sale of a consumer product that relates to the nature of the material or workmanship and affirms or promises that the material or workmanship is free of defects or will meet a specified level of performance over a specified period of time.

(b) Any undertaking by a manufacturer or seller in writing in connection with the sale of a consumer product to refund, repair, replace or take other remedial action with respect to such a product if the product fails to meet the specifications set forth in the undertaking, which written affirmation, promise or undertaking becomes part of the basis of the bargain for purposes other than resale of such product and if there is no separate identifiable charge to the consumer.