N.Y. Insurance Law § 7902: Definitions

§ 7902. Definitions. As used in this article:

(a) "Appliances" may include but are not limited to electrical or

mechanical appliances sold separately or included with the sale of

residential real property such as refrigerators, stoves, ovens, clothes

washers and dryers and dishwashers.

(b) "Administrator" means any person designated by a provider to be

responsible for administration of service contracts, including

servicing, claims management and processing, recordkeeping, customer

service and collection of fees.

(c) "Incidental damages" has the meaning as set forth in subdivision

one of section 2-715 of the uniform commercial code, as such definition

may be amended from time to time.

(d) "Maintenance agreement" means a contract of limited duration that

provides for scheduled maintenance of property, other than contracts

providing for the repair or replacement of such property due to a defect

in materials or workmanship or wear and tear.

(e) "Non-original manufacturers' parts" means replacement parts not

made for or by the original manufacturer of the property, commonly

referred to as "after market parts".

(f) "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.

(g) "Premium" means the consideration paid to an insurer for a service

contract reimbursement insurance policy.

(h) "Provider" means a person who markets, sells, offers for sale,

issues, makes or proposes to make or administers a service contract, and

who is contractually obligated to provide service under a service

contract.

(i) "Provider fee" means the total purchase price or consideration

paid for a service contract.

(j) "Qualified United States financial institution" has the meaning

set forth in the regulations as promulgated from time to time by the

superintendent.

(k) "Service contract" means a contract or agreement, for a separate

or additional consideration, for a specific duration to perform the

repair, replacement or maintenance of property, or indemnification for

repair, replacement or maintenance, due to a defect in materials or

workmanship or wear and tear, with or without additional provision for

indemnity payments for incidental damages, provided any such indemnity

payment per incident shall not exceed the purchase price of the property

serviced. Service contracts may include towing, rental and emergency

road service, and may also provide for the repair, replacement or

maintenance of property for damage resulting from power surges and

accidental damage from handling. Service contracts may also include

contracts to repair, replace or maintain residential appliances and

systems. Such term shall also mean a contract or agreement made (1) by

or for the manufacturer or seller of a motor vehicle tire for repair or

replacement of the tire or wheel as the result of damage arising from a

road hazard, (2) by or for the supplier or seller of a service for

repair of chips or cracks in a motor vehicle windshield, but not

including services that involve the replacement of the entire

windshield, (3) by or for the supplier or seller of a service for repair

or removal of dents, dings or creases from a motor vehicle without

affecting the existing paint finish using paintless dent repair

techniques, but not including services that involve the replacement of

vehicle body panels, or sanding, bonding or painting; and (4) by or for

the supplier or seller of a service for repair or replacement of a motor

vehicle key or key fob in the event that the key or key fob becomes

inoperable, lost or stolen. In conjunction with a motor vehicle leased

for personal use, such term shall also mean a contract to perform the

repair, replacement or maintenance of property, or to provide

indemnification for repair, replacement or maintenance, due to excess

wear and use or damage for interior stains, rips or scratches or missing

interior parts that result in a lease-end charge not otherwise covered

by a service agreement or warranty, provided any such payment shall not

exceed the purchase price of the vehicle.

(l) "Systems" means plumbing, electrical, heating, cooling,

ventilation, and other systems used in residential real property,

including without limitation:

(A) plumbing systems which include gas supply lines and fittings,

water supply, waste and vent pipes and their fittings, septic tanks and

their drain fields, water, gas and sewer service piping, and their

extensions to the tie-in of a public utility connection, or on-site well

and sewage disposal system;

(B) electrical systems which include all wiring, electrical boxes,

switches, outlets, and connections up to the public utility connection;

and

(C) heating, cooling and ventilation systems which include all duct

work, steam, water and refrigerant lines, registers, convectors,

radiation elements and dampers.

(m) "Service contract holder" or "contract holder" means a person who

is the purchaser or holder of a service contract.

(n) "Service contract reimbursement insurance policy" means a policy

of service contract reimbursement insurance.