Indiana § 27-1-43.2-7 "Service contract"

Indiana Statutes

§ 27-1-43.2-7 — "Service contract"

Indiana § 27-1-43.2-7

Title 27INSURANCE

Art. 1DEPARTMENT OF INSURANCE

Ch. 43.2Service Contracts

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Bluebook

Ind. Code § 27-1-43.2-7 (2026).

Text

(a)As used in this chapter, "service contract" means an agreement:

(1)that is effective for a specified period; and

(2)under which a provider:

(A)receives consideration that is separate from the lease or purchase price of a motor vehicle; and

(B)agrees to provide the performance, or indemnification for the cost of performance, of the repair, replacement, or maintenance of a motor vehicle related to the operational or structural failure of the motor vehicle due to a defect in materials or workmanship, accidental damage, normal wear and tear, or damage resulting from a power surge or interruption. A service contract may also provide for the incidental payment of indemnity under limited circumstances, including indemnity for towing, temporary replacement motor vehicle rental, and emergen

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(a) As used in this chapter, "service contract"
means an agreement:
(1) that is effective for a specified period; and
(2) under which a provider:
(A) receives consideration that is separate from the lease or
purchase price of a motor vehicle; and
(B) agrees to provide the performance, or indemnification for
the cost of performance, of the repair, replacement, or
maintenance of a motor vehicle related to the operational or
structural failure of the motor vehicle due to a defect in
materials or workmanship, accidental damage, normal wear and
tear, or damage resulting from a power surge or interruption.
A service contract may also provide for the incidental payment of
indemnity under limited circumstances, including indemnity for
towing, temporary replacement motor vehicle rental, and emergency
road service.
(b) The repair, replacement, or maintenance described in subsection
(a)(2)(B) includes the following:
(1) Repair or replacement of tires or wheels on a motor vehicle
damaged as a result of road hazards.
(2) Removal of dents, dings, or creases on a motor vehicle that
can be repaired using the process of paintless dent removal
without affecting the existing paint finish and without replacing
vehicle body panels, sanding, bonding, or painting.
(3) Repair of chips or cracks in, or replacement of, motor vehicle
windshields as a result of damage caused by road hazards.
(4) Replacement of an inoperable, lost, or stolen motor vehicle
key or keyfob.
(5) Payment of specified incidental costs resulting from failure of
an ancillary protection product to perform as specified.
(6) Payment related to other products and services approved by
the commissioner and consistent with this chapter.
(c) A service contract may not include coverage:
(1) for the:
(A) repair of damage to;
(B) replacement of; or
(C) repair of damage to and replacement of;
the interior surfaces of a vehicle; or
(2) for the:
(A) repair of damage to;
(B) replacement of; or
(C) repair of damage to and replacement of;
the exterior paint or finish of a vehicle.
However, coverage described in subdivision (1) or (2) may be offered
in connection with the sale of an ancillary protection product as defined
in section 1 of this chapter.
(d) "Service contract" does not include an insurance policy that:
(1) is issued by an insurer authorized to engage in the insurance
business in Indiana; and
(2) provides coverage for repair, replacement, or maintenance
described in subsection (a)(2)(B).