§ 523C.1 — Definitions

Iowa § 523C.1

• Jurisdiction: Iowa
• Title XIII: COMMERCE
• Ch. 523C: RESIDENTIAL AND MOTOR VEHICLE SERVICE CONTRACTS

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As used in this chapter, unless the context otherwise requires:
1. “Commissioner” means the commissioner of insurance.
2. “Licensed service company” means a service company which is licensed by the
commissioner pursuant to this chapter.
3. “Maintenanceagreement”meansacontractofanydurationthatprovidesforscheduled
maintenance to property.
4. “Motor vehicle” means any self-propelled vehicle subject to registration under chapter
321.
5. “Motor vehicle manufacturer” means any of the following:
a. A person who manufactures or produces motor vehicles and sells the motor vehicles
under the person’s trade name or label.
b. A person who is a wholly owned subsidiary of any person who manufactures or
produces motor vehicles.
c. A person who holds a one hundred percent ownership interest in another person who
manufactures or produces motor vehicles.
d. A person who does not manufacture or produce motor vehicles, but for which motor
vehicles are sold under the person’s trade name or label.
e. Apersonwhomanufacturesorproducesmotorvehicles, butthemotorvehiclesaresold
under the trade name or label of another person.
f. A person who does not manufacture or produce motor vehicles, but who licenses the
use of the person’s trade name or label to another person pursuant to a written contract, who
then sells motor vehicles under the trade name or label of the licensor.
6. “Motor vehicle service contract” means a contract or agreement sold for separate
consideration for a specific duration that undertakes to perform the repair, replacement,
or maintenance of a motor vehicle, or indemnification for such repair, replacement, or
maintenance, for the operation or structural failure of a motor vehicle due to a defect in
materials, workmanship, or normal wear and tear, with or without additional provisions for
the incidental payment of indemnity under limited circumstances, including but not limited
to motor vehicle towing, rental, emergency road service, and road hazard protection. “Motor
vehicleservicecontract”alsoincludesacontractoragreementsoldforseparateconsideration
for a specific duration that provides for any of the following services or products:
§523C.1, RESIDENTIAL AND MOTOR VEHICLE SERVICE CONTRACTS 2
a. The repair or replacement of motor vehicle tires or wheels that are damaged as a result
of contact with road hazards, including but not limited to potholes, rocks, wood debris, metal
parts, glass, plastic, curbs, or composite scraps.
b. The removal of dents or creases on a motor vehicle under a process that does not use
paint or affect the existing paint finish, and without sanding, bonding, or replacing motor
vehicle body panels.
c. The repair or replacement of motor vehicle windshields that are damaged as a result of
contact with road hazards.
d. The replacement of motor vehicle keys or key fobs in the event that such device
becomes inoperable, lost, or stolen.
e. Any other service or product approved by the commissioner.
7. “Premium” means the consideration paid to an insurer for a reimbursement insurance
policy.
8. “Record” means information stored or preserved in any medium, including in an
electronic or paper format. A “record” includes but is not limited to documents, books,
publications, accounts, correspondence, memoranda, agreements, computer files, film,
microfilm, photographs, and audio or visual tapes.
9. “Reimbursement insurance policy” means a contractual liability insurance policy
issued to a service company that either provides reimbursement to a service company under
the terms of insured service contracts issued or sold by the service company or, in the event
of nonperformance by the service company, pays, on behalf of the service company, all
covered contractual obligations incurred by the service company under the terms of the
insured service contracts issued or sold by the service company.
10. “Residential service contract” means a contract or agreement between a residential
customer and a service company which undertakes, for a predetermined fee and for any
period of time, to service, maintain, repair, replace, or indemnify expenses for all or any part
of the operational or structural components, appliances, or electrical, mechanical, plumbing,
heating, cooling, or air-conditioning systems of residential property in the state which fails
due to normal wear or tear or inherent defect. “Residential service contract” also includes a
contract which provides for the service, repair, replacement, or maintenance of property for
damage resulting from power surges, roof leakage, and accidental damage.
11. “Service company” means a person who is contractually obligated to perform services
pursuant to a motor vehicle service contract or residential service contract.
12. “Service contract” means a motor vehicle service contract or residential service
contract.
13. “Warranty” means a statement made solely by the manufacturer, importer, or seller of
property or services without consideration, that is not negotiated or separated from the sale
of the product and is incidental to the sale of the product, and that guarantees indemnity for
defective parts, mechanical or electrical breakdown, and labor or other remedial measures,
such as repair or replacement of the property or repetition of services.