WILLIAM DONALD SCHAEFER, Governor

Ch. 460

(1) UNDERTAKES TO PERFORM OR PROVIDE REPAIR OR REPLACEMENT
SERVICE, OR INDEMNIFICATION FOR SUCH SERVICE, FOR THE OPERATIONAL OR
STRUCTURAL FAILURE OF A MOTOR VEHICLE DUE TO DEFECT IN MATERIALS OR
WORKMANSHIP OR NORMAL WEAR AND TEAR INCLUDING INCIDENTAL TOWING
AND SUBSTITUTE TRANSPORTATION COVERAGE; AND

(2) IS ISSUED BY AN INSURER AUTHORIZED TO DO BUSINESS IN THIS
STATE.

(C) (1) "MOTOR VEHICLE SERVICE CONTRACT" MEANS A CONTRACT OR
AGREEMENT GIVEN FOR CONSIDERATION OVER AND ABOVE THE LEASE OR
PURCHASE PRICE OF A MOTOR VEHICLE THAT UNDERTAKES TO PERFORM OR
PROVIDE REPAIR OR REPLACEMENT SERVICE, OR INDEMNIFICATION FOR SUCH
SERVICE, FOR THE OPERATIONAL OR STRUCTURAL FAILURE OF A MOTOR VEHICLE
DUE TO DEFECT IN MATERIALS OR WORKMANSHIP OR NORMAL WEAR AND TEAR,
INCLUDING INCIDENTAL TOWING AND SUBSTITUTE TRANSPORTATION COVERAGE.

(2) "MOTOR VEHICLE SERVICE CONTRACT" DOES NOT INCLUDE
MECHANICAL BREAKDOWN INSURANCE.

(D) "MOTOR VEHICLE SERVICE CONTRACT REIMBURSEMENT INSURANCE
POLICY" MEANS A POLICY OF INSURANCE PROVIDING COVERAGE FOR ALL
OBLIGATIONS AND LIABILITIES INCURRED BY A SERVICE CONTRACT PROVIDER
UNDER THE TERMS OF ANY MOTOR VEHICLE SERVICE CONTRACT ISSUED BY THE
SERVICE CONTRACT PROVIDER.

(E) "SERVICE CONTRACT HOLDER" MEANS A PERSON WHO PURCHASES A
MOTOR VEHICLE SERVICE CONTRACT.

(F) (1) "SERVICE CONTRACT PROVIDER" MEANS A PERSON WHO ISSUES,
MAKES, PROVIDES, SELLS, OR OFFERS TO SELL A MOTOR VEHICLE SERVICE
CONTRACT.

(2) "SERVICE CONTRACT PROVIDER" DOES NOT INCLUDE AN INSURER
AUTHORIZED TO DO BUSINESS IN THIS STATE.

699.

A MOTOR VEHICLE SERVICE CONTRACT MAY NOT BE ISSUED, SOLD, OR
OFFERED FOR SALE IN THIS STATE UNLESS:

(1) THE SERVICE CONTRACT PROVIDER IS INSURED UNDER A MOTOR
VEHICLE SERVICE CONTRACT REIMBURSEMENT INSURANCE POLICY ISSUED BY AN
INSURER AUTHORIZED TO DO BUSINESS IN THIS STATE;

(2) TRUE AND CORRECT COPIES OF THE MOTOR VEHICLE SERVICE
CONTRACT AND THE MOTOR VEHICLE SERVICE CONTRACT REIMBURSEMENT
INSURANCE POLICY HAVE BEEN FILED WITH THE COMMISSIONER; AND

(3) THE MOTOR VEHICLE SERVICE CONTRACT CONSPICUOUSLY
STATES:

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