§ 7902 — Definitions

New York § 7902

• Jurisdiction: New York
• Law ISC: Insurance
• Art. 79: Service Contracts

Text

§ 7902. Definitions. As used in this article:\n (a) "Appliances" may include but are not limited to electrical or\nmechanical appliances sold separately or included with the sale of\nresidential real property such as refrigerators, stoves, ovens, clothes\nwashers and dryers and dishwashers.\n (b) "Administrator" means any person designated by a provider to be\nresponsible for administration of service contracts, including\nservicing, claims management and processing, recordkeeping, customer\nservice and collection of fees.\n (c) "Incidental damages" has the meaning as set forth in subdivision\none of section 2-715 of the uniform commercial code, as such definition\nmay be amended from time to time.\n (d) "Maintenance agreement" means a contract of limited duration that\nprovides for scheduled maintenance of property, other than contracts\nproviding for the repair or replacement of such property due to a defect\nin materials or workmanship or wear and tear.\n (e) "Non-original manufacturers' parts" means replacement parts not\nmade for or by the original manufacturer of the property, commonly\nreferred to as "after market parts".\n (f) "Person" means an individual, partnership, corporation,\nincorporated or unincorporated association, joint stock company,\nreciprocal, syndicate or any similar entity or combination of entities\nacting in concert.\n (g) "Premium" means the consideration paid to an insurer for a service\ncontract reimbursement insurance policy.\n (h) "Provider" means a person who markets, sells, offers for sale,\nissues, makes or proposes to make or administers a service contract, and\nwho is contractually obligated to provide service under a service\ncontract.\n (i) "Provider fee" means the total purchase price or consideration\npaid for a service contract.\n (j) "Qualified United States financial institution" has the meaning\nset forth in the regulations as promulgated from time to time by the\nsuperintendent.\n (k) "Service contract" means a contract or agreement, for a separate\nor additional consideration, for a specific duration to perform the\nrepair, replacement or maintenance of property, or indemnification for\nrepair, replacement or maintenance, due to a defect in materials or\nworkmanship or wear and tear, with or without additional provision for\nindemnity payments for incidental damages, provided any such indemnity\npayment per incident shall not exceed the purchase price of the property\nserviced. Service contracts may include towing, rental and emergency\nroad service, and may also provide for the repair, replacement or\nmaintenance of property for damage resulting from power surges and\naccidental damage from handling. Service contracts may also include\ncontracts to repair, replace or maintain residential appliances and\nsystems. Such term shall also mean a contract or agreement made (1) by\nor for the manufacturer or seller of a motor vehicle tire for repair or\nreplacement of the tire or wheel as the result of damage arising from a\nroad hazard, (2) by or for the supplier or seller of a service for\nrepair of chips or cracks in a motor vehicle windshield, but not\nincluding services that involve the replacement of the entire\nwindshield, (3) by or for the supplier or seller of a service for repair\nor removal of dents, dings or creases from a motor vehicle without\naffecting the existing paint finish using paintless dent repair\ntechniques, but not including services that involve the replacement of\nvehicle body panels, or sanding, bonding or painting; and (4) by or for\nthe supplier or seller of a service for repair or replacement of a motor\nvehicle key or key fob in the event that the key or key fob becomes\ninoperable, lost or stolen. In conjunction with a motor vehicle leased\nfor personal use, such term shall also mean a contract to perform the\nrepair, replacement or maintenance of property, or to provide\nindemnification for repair, replacement or maintenance, due to excess\nwear and use or damage for interior stains, rips or scratches or missing\ninterior parts that result in a lease-end charge not otherwise covered\nby a service agreement or warranty, provided any such payment shall not\nexceed the purchase price of the vehicle.\n (l) "Systems" means plumbing, electrical, heating, cooling,\nventilation, and other systems used in residential real property,\nincluding without limitation:\n (A) plumbing systems which include gas supply lines and fittings,\nwater supply, waste and vent pipes and their fittings, septic tanks and\ntheir drain fields, water, gas and sewer service piping, and their\nextensions to the tie-in of a public utility connection, or on-site well\nand sewage disposal system;\n (B) electrical systems which include all wiring, electrical boxes,\nswitches, outlets, and connections up to the public utility connection;\nand\n (C) heating, cooling and ventilation systems which include all duct\nwork, steam, water and refrigerant lines, registers, convectors,\nradiation elements and dampers.\n (m) "Service contract holder" or "contract holder" means a person who\nis the purchaser or holder of a service contract.\n (n) "Service contract reimbursement insurance policy" means a policy\nof service contract reimbursement insurance.\n