§ 51:3162 — Definitions

§3162. Definitions
As used in this Chapter, unless the context otherwise requires, the following words
and phrases shall be defined as follows:
(1) "Administrator" means the person who is responsible for the administration of
the motor vehicle service contract or the motor vehicle service contract plan or who is
responsible for any submission required by this Chapter.
(2) "Consumer" means a natural person who buys, other than for purposes of resale,
any corporeal movable property, including a motor vehicle, that is distributed in commerce
and that is normally used for personal, family, or household purposes and not for business
or research purposes.
(3) "Maintenance-only agreement" means a contract of limited duration that provides
only for scheduled maintenance.
(4) "Motor vehicle manufacturer" means a person who is any of the following:
(a) A manufacturer or producer of motor vehicles who sells motor vehicles under the
manufacturer's or producer's own name or label.
(b) The wholly owned subsidiary of a person who manufactures or produces motor
vehicles.
(c) A corporation which owns one hundred percent of a person who manufactures
or produces motor vehicles.
(d) Not a manufacturer or producer of motor vehicles, but sells motor vehicles under
the trade name or label of another person who manufactures or produces motor vehicles.
(e) A manufacturer or producer of motor vehicles who sells the motor vehicles under
the trade name or label of another person who manufactures or produces motor vehicles.
(f) Not a manufacturer or producer of motor vehicles but who, pursuant to a written
contract, licenses the use of its trade name or label to another person who manufactures or
produces motor vehicles that sells motor vehicles under the licensor's trade name or label.
(5)(a) "Motor vehicle service contract" means a contract or agreement for a
separately stated consideration for any duration to perform the service, repair, replacement,
or maintenance of property or indemnification for service, repair, replacement, or
maintenance, for the operational or structural failure of any motor vehicle due to a defect in
materials, workmanship, inherent defect, or normal wear and tear, with or without additional
provisions for incidental payment or indemnity under limited circumstances, including but
not limited to towing, rental, and emergency road service and road hazard protection.
(b) "Motor vehicle service contract" also includes a contract or agreement for a
separately stated consideration for any duration to perform any one or more of the following:
(i) The repair or replacement of tires or wheels on a motor vehicle damaged as a
result of coming into contact with road hazards including but not limited to potholes, rocks,
wood debris, metal parts, glass, plastic, curbs, or composite scraps.
(ii) The 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.
(iii) The repair of chips or cracks in or the replacement of motor vehicle windshields
as a result of damage caused by road hazards.
(iv) The replacement of a motor vehicle key or key-fob in the event that the key or
key-fob becomes inoperable or is lost or stolen.
(c) A motor vehicle service contract is not insurance in this state or otherwise
regulated under any provision of the Louisiana Insurance Code.
(6) "Person" means an individual, partnership, corporation, incorporated or
unincorporated association, joint stock company, reciprocal, syndicate, or any similar entity
or combination of entities acting in concert.
(7) "Provider" means a person who is contractually obligated to provide the services
or indemnification under a motor vehicle service contract.
(8) "Provider fee" means the consideration paid for a motor vehicle service contract.
(9) "Reimbursement insurance policy" means a policy of insurance issued to a
provider to do either of the following:
(a) Provide reimbursement to the provider pursuant to the terms of the insured motor
vehicle service contracts issued or sold by the provider.
(b) In the event of the provider's nonperformance, pay on behalf of the provider all
covered contractual obligations incurred by the provider under the terms of the insured motor
vehicle service contracts issued or sold by the provider.
(10)(a) "Road hazard" means a hazard that is encountered while driving a motor
vehicle including but not limited to potholes, rocks, wood debris, metal parts, glass, plastic,
curbs, or composite scraps.
(b) "Road hazard" shall not include any damage caused by collision with another
vehicle, vandalism, or other causes usually covered under the comprehensive or collision
coverages provided by an automobile physical damage policy.
(11) "Service contract holder" or "contract holder" means a person who is the
purchaser or holder of a motor vehicle service contract.
(12) "Solvent" means having a current financial statement in which assets exceed
liabilities as calculated in accordance with generally accepted accounting principles.
(13) "Warranty" means a warranty made solely by the motor vehicle manufacturer,
importer, or seller of a vehicle that is not negotiated or separated from the sale of the vehicle
and is incidental to the sale of the vehicle, that guarantees indemnity for defective parts,
mechanical or electrical breakdown, labor, or other remedial measures, such as repair or
replacement of the vehicle, or repetition of services.

Legislative History

Acts 2018, No. 592, §2, eff. Feb. 1, 2019.