LD 1640
pg. 2
Page 1 of 11 An Act Regarding Service Contracts Page 3 of 11
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LR 2384
Item 1

 
3.__Maintenance agreement.__"Maintenance agreement" means a
contract of limited duration that provides for scheduled
maintenance only.

 
4.__Nonoriginal manufacturer's parts.__"Nonoriginal
manufacturer's parts" means replacement parts not made for or by
the original manufacturer of the property, commonly referred to
as "after market parts."

 
5.__Person.__"Person" means an individual, partnership,
corporation, incorporated or unincorporated association, joint
stock company, reciprocal exchange, syndicate or any similar
entity or combination of entities acting in concert.

 
6.__Premium.__"Premium" means the consideration paid to an
insurer for a reimbursement insurance policy.

 
7.__Provider.__"Provider" means a person who is contractually
obligated to the service contract holder under the terms of the
service contract.

 
8.__Provider fee.__"Provider fee" means the consideration paid
for a service contract.

 
9.__Reimbursement insurance policy.__"Reimbursement insurance
policy" means a policy of insurance that is issued to a provider
to reimburse the provider or to pay on behalf of the provider all
covered contractual obligations incurred by the provider under
the terms of the insured service contracts issued or sold by the
provider.

 
10.__Service contract.__"Service contract" means a contract or
agreement for a separately stated consideration for a specific
duration to perform the repair, replacement or maintenance of
property or indemnification for repair, replacement or
maintenance for the operational or structural failure due to a
defect in materials or workmanship or normal wear and tear, with
or without additional provision for incidental payment or
indemnity under limited circumstances, including, but not limited
to, towing, rental and emergency road service.__Service contracts
may provide for the repair, replacement or maintenance of
property for damage resulting from power surges and accidental
damage from handling.

 
11.__Service contract holder or contract holder.__"Service
contract holder" or "contract holder" means a person who is the
purchaser or holder of a service contract.

 
12.__Warranty.__"Warranty" means a warranty made solely by the
manufacturer, importer or seller of property or services without
consideration that is not negotiated or separated from


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