Sec. 1. 24-A MRSA c. 87 is enacted to read:

CHAPTER 87

SERVICE CONTRACTS

§7001.__Scope and purpose

1.__ Purpose.__The purpose of this chapter is to create a legal framework within which service contracts may be sold in this State.

2.__General exemptions.__ The following are exempt from the provisions of this Title, including the other provisions of this chapter:

A.__Warranties;

B.__Maintenance agreements;

C.__Warranties, service contracts and maintenance agreements offered by public utilities on their transmission devices to the extent they are regulated by the Public Utilities Commission; and

D.__Service contracts sold or offered for sale to persons other than consumers.

3.__Service contract provider exemptions. The marketing, sale, offering for sale, issuance, making, proposing to make and administration of service contracts by providers and related service contract sellers, administrators and other persons are subject to the provisions of this chapter and exempt from all other provisions of this Title.

§7002.__Definitions

As used in this chapter, unless the context otherwise indicates, the following terms have the following meanings.

1.__Administrator.__"Administrator" means the person who is responsible for the administration of the service contracts or who is responsible for any filings required by this chapter.

2.__Consumer.__"Consumer" means a natural person who buys other than for purposes of resale any tangible personal property that is distributed in commerce and that is normally used for personal, family or household purposes and not for business or research purposes.