20-1095.02. Exemptions; definition

A. This article, except for section 20-1095.09, does not apply to the following:

1. Warranties issued by manufacturers, builders or sellers on the actual items, structures or improvements that they manufacture, build or sell.

2. Service contract programs if a motor vehicle manufacturer or motor vehicle dealer has financial responsibility for performance.

3. Warranties and service contracts issued by a corporation other than a manufacturer or seller in connection with consumer products that are distributed by the corporation if the issuing corporation:

(a) Is an affiliate of a consumer products manufacturer.

(b) By March 1 of each year submits to the director an independently audited financial statement in which at least one officer of the issuing corporation attests and a certified public accountant certifies that the issuing corporation has and maintains a net worth in excess of one hundred million dollars. Any information, documents and copies that are obtained by or disclosed to the director or any other person pursuant to this subdivision are not available for public inspection, except that the director may use this information in any proceeding relating to this article.

4. A service company that issues a service contract to persons other than a consumer.

5. A service company that is in the business of selling or servicing any one of the following, if the service contract only covers the actual item the service company sells:

(a) Appliances or electronic equipment, or both.

(b) Residential heating, cooling or air conditioning systems.

(c) Mechanical equipment, other than motor vehicles or their components.

6. A service company only to the extent that it is in the business of selling or servicing directly, or through other retailers, cell phones and other electronic personal communications devices and accessories.

7. Any person licensed pursuant to title 32, chapter 10, or not required to be licensed because exempt pursuant to section 32-1121, subsection A, paragraph 13 whose service contract only covers the actual items, structures or improvements that the person installs, constructs or builds.

8. A maintenance agreement of limited duration that provides for scheduled maintenance only and does not include repair or replacement.

B. The director may employ independent examiners pursuant to section 20-156 to review and analyze the financial statements that are submitted pursuant to subsection A, paragraph 3 of this section.

C. The types of agreements referred to in subsection A of this section are not insurance and are not required to comply with the insurance laws of this state unless a provision is made expressly applicable in this article.

D. For the purposes of this section, " affiliate" means a corporation that is owned or controlled by or is under common control with a manufacturer.