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The Vermont Statutes Online



Title

08

:
Banking and Insurance






Chapter

113

:
LIABILITY INSURANCE






Subchapter

004
:
SERVICE CONTRACT COMPANIES










 

§

4247. Definitions

As used in this

subchapter:

(1)

"Commissioner" means the Commissioner of Financial Regulation.

(2)

"Consumer" means a natural person who buys other than for purposes of

resale any tangible personal property that is distributed in commerce and that

is normally used for personal, family, or household purposes, and not for

commercial purposes.

(3)

"Service contract holder" means a person who is the purchaser or

holder of a service contract.

(4)

"Manufacturer" means a person that manufactures, produces, or markets

goods and sells the goods under its own name or label; or manufactures or

produces goods and the goods are sold under the trade name or label of another

person.

(5)

"Maintenance agreement" means a contract of limited duration that

provides for scheduled maintenance only.

(6)

"Mechanical breakdown insurance" means any policy, contract, or

agreement issued by an authorized insurer that provides for the repair,

replacement, or maintenance of property or indemnification for repair,

replacement, or maintenance, for the operational or structural failure of the

property due to a defect in materials or workmanship or due to normal wear and

tear.

(7)

"Provider" means a person who issues, makes, or provides a service

contract, and who is contractually obligated to provide service under a service

contract and is not the manufacturer.

(8)

"Service contract" means any contract or agreement to perform or

indemnify for a specific duration the repair, replacement, or maintenance of

property for operational or structural failure due to a defect in materials,

workmanship, or normal wear and tear, with or without additional provisions for

incidental payment of indemnity under limited circumstances, including towing,

rental, and emergency road service.

(9)

"Service contract reimbursement policy" means a policy of insurance

providing full reimbursement coverage for all obligations and liabilities under

the terms of a service contract issued by the provider.

(10)

"Warranty" means a warranty made solely by the manufacturer,

importer, or seller of property or services, without charge, 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, labor, or other remedial measures, such as

repair or replacement of the property or repetition of services. (Added 1997,

No. 109 (Adj. Sess.), § 2, eff. Sept. 1, 1998; amended 2011, No. 78 (Adj.

Sess.), § 2, eff. April 2, 2012.)