49-2802 DEFINITIONS.
MOTOR VEHICLES
CHAPTER 28
MOTOR VEHICLE SERVICE CONTRACTS
49-2802. Definitions. As used in this chapter:
(1) "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 defect in materials or workmanship or normal wear and tear and that is issued by an insurance company authorized to do business in this state.
(2) "Motor vehicle service contract" shall mean a contract or agreement given for consideration over and above the lease or purchase price of a motor vehicle 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 defect in materials or workmanship or normal wear and tear but shall not include mechanical breakdown insurance. A motor vehicle service contract may provide full or partial reimbursement for other expenses incurred by the motor vehicle service contract holder as a direct and proximate result of an operational or structure failure or reduced operating efficiency if included in the contract coverage, including but not limited to, towing, rental car, lodging, motor club, maintenance benefits, roadside assistance and meal expenses.
(3) "Motor vehicle service contract holder" means a person who purchases a motor vehicle service contract, or a permitted transferee.
(4) "Motor vehicle service contract provider" shall mean a person or the assignee of such person who, as the manufacturer, distributor or seller of its product, or a person acting through or with the written consent of the manufacturer, distributor or seller of the product, offers to sell a motor vehicle service contract.
(5) "Liability insurance policy" shall mean a policy of insurance providing coverage for all contractual obligations incurred by a motor vehicle service contract provider under the terms of a motor vehicle service contract issued or sold by the motor vehicle service contract provider.