§ 4-90-502 - Definitions.
4-90-502. Definitions.
For purposes of this subchapter:
(1) "Commissioner" shall mean the Insurance Commissioner for the State of Arkansas;
(2) "Mechanical breakdown insurance" shall mean a policy, contract, or agreement that undertakes to perform or provide repair or replacement service, or indemnification for such service, for the operational or structural failure of a motor vehicle due to a defect in materials or workmanship or normal wear and tear and that is issued by an insurer that is authorized or approved to transact the business of insurance in this state;
(3) "Motor vehicle" shall mean any vehicle designed for highway use and subject to registration under 27-14-701 et seq.;
(4) "Motor vehicle service contract" or "service contract" shall mean a contract or agreement given for separate and identifiable consideration pursuant to which a service contract provider undertakes to perform or provide repair or replacement service, or indemnification for such service, for the operational or structural failure of a motor vehicle due to a defect in materials or workmanship or normal wear and tear, but does not include mechanical breakdown insurance;
(5) "Motor vehicle service contract provider" or "provider" shall mean a person who, as the principal or obligor, issues, makes, sells, or offers to sell a service contract;
(6) "Motor vehicle service contract reimbursement insurance policy" shall mean a policy of insurance providing coverage for all obligations and liabilities incurred by a motor vehicle service contract provider under the terms of the motor vehicle service contracts issued or sold by the provider; and
(7) "Service contract holder" or "holder" shall mean the person who purchases a service contract or a permitted transferee.