§ 8-37A-2 — Definitions

For the purposes of this chapter, the following words have the following meanings:
(1) ADMINISTRATOR. The person who may be responsible for the administrative or operational function of motor vehicle value protection agreements including, but not limited to, the adjudication of claims or benefit requests by contract holders.
(2) CONTRACT HOLDER. A person who is the purchaser or holder of a motor vehicle value protection agreement.
(3) FREE LOOK PERIOD. The period of time not less than 30 days from the effective date of a motor vehicle value protection agreement until the date the borrower may cancel the agreement without penalty, fees, or costs to the borrower.
(4) MOTOR VEHICLE VALUE PROTECTION AGREEMENT. A contractual agreement that provides a benefit towards either the reduction of all or part of the contract holder’s current finance agreement deficiency balance, or towards the purchase or lease of a replacement motor vehicle or motor vehicle services, based on the occurrence of an adverse event to the motor vehicle including, but not limited to, loss, theft, damage, obsolescence, diminished value, or depreciation. A motor vehicle value protection agreement does not include a GAP waiver, as defined in Chapter 37 of this title, but may include similar agreements including, but not limited to, trade-in-credit agreements, diminished value agreements, or depreciation benefit agreements.
(5) PROVIDER. A person that is obligated to provide a benefit under a motor vehicle value protection agreement.

Legislative History

(Act 2022-179, §2.)