§ 42-21-101 — Definitions

As used in this article 21, unless the context
otherwise requires:

(1) Administrator means the person that is responsible for the
administrative or operational functions of a vehicle value protection agreement.
These functions include the adjudication of benefit requests by contract holders.

(2) Contract holder means a person that is the purchaser of or holder of a
vehicle value protection agreement.

(3) Covered vehicle means a vehicle that is the subject of a vehicle value
protection agreement.

(4) Dealer means:

(a) A motor vehicle dealer as defined in section 44-20-102 (18);

(b) A powersports vehicle dealer as defined in section 44-20-402 (12);

(c) A used motor vehicle dealer as defined in section 44-20-102 (26); or

(d) A used powersports vehicle dealer as defined in section 44-20-402 (20).

(5) Finance agreement means a loan agreement for the purchase or
refinancing of a vehicle; a retail installment sales contract for the purchase,
refinancing, or lease of a vehicle; or an agreement to lease a vehicle.

(6) Insurer means a licensed insurance company authorized to issue
contractual liability insurance under title 10.

(7) Provider means a person that is obligated to provide a benefit in
accordance with a vehicle value protection agreement.

(8) Secure bill of sale is an agreement between a dealer and a contract
holder that:

(a) Identifies the vehicle by year, make, and VIN or by other identifying
information;

(b) Shows the time and date of sale; and

(c) Is signed by both the buyer and the seller.

(9) Vehicle means:

(a) A motor vehicle as defined in section 42-1-102 (58);

(b) A powersports vehicle as defined in section 44-20-402 (11);

(c) A camper coach as defined in section 42-1-102 (13); or

(d) A camper trailer as defined in section 42-1-102 (14).

(10) (a) Vehicle value protection agreement means a contractual
agreement between a provider and a contract holder that provides benefits applied
toward:

(I) The value of the contract holder's covered vehicle upon the occurrence of
the following:

(A) An adverse event, including damage incurred and reported on a vehicle
history report, causing the covered vehicle to decrease in value;

(B) The total loss or unrecovered theft of the covered vehicle that, at the
time of the loss or theft, had decreased in value compared to the value of the
vehicle at the time it was purchased; or

(C) Events covered by a contractual agreement between a dealer and a
contract holder that provide the contract holder a loyalty benefit when the contract
holder returns to the dealer to purchase or lease a replacement vehicle after a total
loss, unrecovered theft, or trade-in of the covered vehicle; or

(II) The finance agreement for or secure bill of sale on a replacement vehicle
upon the occurrence of an event described in subsections (10)(a)(I)(A) to (10)(a)(I)(C)
of this section.

(b) Vehicle value protection agreement includes a trade-in agreement,
diminished value agreement, cash down payment protection agreement, or
depreciation benefit agreement.

(c) Vehicle value protection agreement does not include a debt waiver or a
motor vehicle service contract as defined in section 42-11-101 (3).

Legislative History

Source: L. 2023: Entire article added, (SB 23-015), ch. 36, p. 126, � 1, effective August 7.