§ 14-4A-01. Definitions

   (a) In general. -- In this subtitle the following words have the meanings indicated.

(b) Administrator. -- "Administrator" means a person that is designated by a warrantor to be responsible for the administration of a vehicle protection product warranty.

(c) Division. -- "Division" means the Division of Consumer Protection of the Office of the Attorney General.

(d) Incidental costs. --

   (1) "Incidental costs" means an expense that:

      (i) Is specified in a vehicle protection product warranty;

      (ii) Is incurred by the warranty holder; and

      (iii) Relates to the failure of a vehicle protection product to perform as provided in the vehicle protection product warranty.

   (2) "Incidental costs" include:

      (i) Insurance policy deductibles;

      (ii) Charges for rental vehicles;

      (iii) The difference between the value of a stolen vehicle at the time of theft and the cost of a replacement vehicle;

      (iv) Sales taxes;

      (v) Registration fees;

      (vi) Transaction fees; and

      (vii) Mechanical inspection fees.

(e) Vehicle protection product. --

   (1) "Vehicle protection product" means a vehicle protection device, system, or service that:

      (i) Is sold with a written warranty;

      (ii) Is installed on or applied to a vehicle; and

      (iii) Is designed to prevent loss or damage to a vehicle from a specific cause.

   (2) "Vehicle protection product" includes:

      (i) An alarm system;

      (ii) A body part marking product;

      (iii) A steering lock;

      (iv) A window etch product;

      (v) A pedal or ignition lock;

      (vi) A fuel or ignition kill switch; and

      (vii) An electronic, radio, or satellite tracking device.

(f) Vehicle protection product warranty. -- "Vehicle protection product warranty" means a written agreement by a warrantor that provides that if a vehicle protection product fails to prevent loss or damage to a vehicle from a specific cause, the warrantor shall pay to, or on behalf of, the warranty holder specified incidental costs incurred as a result of the failure of the vehicle protection product to perform in accordance with the terms of the vehicle protection product warranty.

(g) Warrantor. --

   (1) "Warrantor" means a person that is contractually obligated to the warranty holder under the terms of the vehicle protection product warranty.

   (2) "Warrantor" does not include an authorized insurer that issues a warranty reimbursement insurance policy.

(h) Warranty holder. -- "Warranty holder" means a person that purchases a vehicle protection product warranty or a permitted transferee.

(i) Warranty reimbursement insurance policy. -- "Warranty reimbursement insurance policy" means a policy of insurance that is issued to a warrantor to:

   (1) Provide reimbursement to the warrantor; or

   (2) Pay on behalf of the warrantor all covered contractual obligations incurred by the warrantor under the terms and conditions of the insured vehicle protection product warranties sold by the warrantor.

HISTORY: 2007, ch. 407.