§3162. Definitions

As used in this Chapter, unless the context otherwise requires, the following words and phrases shall be defined as follows:

(1) "Administrator" means the person who is responsible for the administration of the motor vehicle service contract or the motor vehicle service contract plan or who is responsible for any submission required by this Chapter.

(2) "Consumer" means a natural person who buys, other than for purposes of resale, any corporeal movable property, including a motor vehicle, that is distributed in commerce and that is normally used for personal, family, or household purposes and not for business or research purposes.

(3) "Maintenance-only agreement" means a contract of limited duration that provides only for scheduled maintenance.

(4) "Motor vehicle manufacturer" means a person who is any of the following:

(a) A manufacturer or producer of motor vehicles who sells motor vehicles under the manufacturer's or producer's own name or label.

(b) The wholly owned subsidiary of a person who manufactures or produces motor vehicles.

(c) A corporation which owns one hundred percent of a person who manufactures or produces motor vehicles.

(d) Not a manufacturer or producer of motor vehicles, but sells motor vehicles under the trade name or label of another person who manufactures or produces motor vehicles.

(e) A manufacturer or producer of motor vehicles who sells the motor vehicles under the trade name or label of another person who manufactures or produces motor vehicles.

(f) Not a manufacturer or producer of motor vehicles but who, pursuant to a written contract, licenses the use of its trade name or label to another person who manufactures or produces motor vehicles that sells motor vehicles under the licensor's trade name or label.

(5)(a) "Motor vehicle service contract" means a contract or agreement for a separately stated consideration for any duration to perform the service, repair, replacement, or maintenance of property or indemnification for service, repair, replacement, or maintenance, for the operational or structural failure of any motor vehicle due to a defect in materials, workmanship, inherent defect, or normal wear and tear, with or without additional provisions for incidental payment or indemnity under limited circumstances, including but not limited to towing, rental, and emergency road service and road hazard protection.

(b) "Motor vehicle service contract" also includes a contract or agreement for a separately stated consideration for any duration to perform any one or more of the following:

(i) The repair or replacement of tires or wheels on a motor vehicle damaged as a result of coming into contact with road hazards including but not limited to potholes, rocks, wood debris, metal parts, glass, plastic, curbs, or composite scraps.

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

(iii) The repair of chips or cracks in or the replacement of motor vehicle windshields as a result of damage caused by road hazards.

(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.

(c) A motor vehicle service contract is not insurance in this state or otherwise regulated under any provision of the Louisiana Insurance Code.

(6) "Person" means an individual, partnership, corporation, incorporated or unincorporated association, joint stock company, reciprocal, syndicate, or any similar entity or combination of entities acting in concert.

(7) "Provider" means a person who is contractually obligated to provide the services or indemnification under a motor vehicle service contract.

(8) "Provider fee" means the consideration paid for a motor vehicle service contract.

(9) "Reimbursement insurance policy" means a policy of insurance issued to a provider to do either of the following:

(a) Provide reimbursement to the provider pursuant to the terms of the insured motor vehicle service contracts issued or sold by the provider.

(b) In the event of the provider's nonperformance, pay on behalf of the provider all covered contractual obligations incurred by the provider under the terms of the insured motor vehicle service contracts issued or sold by the provider.

(10)(a) "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.

(b) "Road hazard" shall not include any damage caused by collision with another vehicle, vandalism, or other causes usually covered under the comprehensive or collision coverages provided by an automobile physical damage policy.

(11) "Service contract holder" or "contract holder" means a person who is the purchaser or holder of a motor vehicle service contract.

(12) "Solvent" means having a current financial statement in which assets exceed liabilities as calculated in accordance with generally accepted accounting principles.

(13) "Warranty" means a warranty made solely by the motor vehicle manufacturer, importer, or seller of a vehicle that is not negotiated or separated from the sale of the vehicle and is incidental to the sale of the vehicle, that guarantees indemnity for defective parts, mechanical or electrical breakdown, labor, or other remedial measures, such as repair or replacement of the vehicle, or repetition of services.

Acts 2018, No. 592, §2, eff. Feb. 1, 2019.