The Vermont Statutes Online
Banking and Insurance
SERVICE CONTRACT COMPANIES
As used in this
"Commissioner" means the Commissioner of Financial Regulation.
"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
"Service contract holder" means a person who is the purchaser or
holder of a service contract.
"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
"Maintenance agreement" means a contract of limited duration that
provides for scheduled maintenance only.
"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
"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.
"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.
"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.
"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.)