{"data":{"id":"us-ok/okla.-stat.-tit.-15-15-141.2","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 15, § 15-141.2","heading":"Definitions","body":"As used in the Service Warranty Act:\n\n1. \"Commissioner\" means the Insurance Commissioner;\n\n2. \"Consumer product\" means tangible personal property\n\nprimarily used for personal, family, or household purposes;\n\n3. \"Department\" means the Insurance Department;\n\n4. \"Gross income\" means the total amount of revenue received in\n\nconnection with business-related activity;\n\n5. \"Gross written provider fee\" means the total amount of\n\nconsideration, inclusive of commissions, paid by a consumer for a\n\nservice warranty issued in this state;\n\n6. \"Impaired\" means having liabilities in excess of assets;\n\n7. \"Indemnify\" means to undertake repair or replacement of a\n\nconsumer product or a newly constructed residential structure\n\nincluding any appliances, electrical, plumbing, heating, cooling or\n\nair conditioning systems, in return for the payment of a segregated\n\nprovider fee, when the consumer product or residential structure\n\nbecomes defective or suffers operational failure;\n\n8. \"Insolvent\" means any actual or threatened delinquency\n\nincluding, but not limited to, any one or more of the following\n\ncircumstances:\n\na. (1) for an association relying on subsection A of\n\nSection 141.6 of this title, if the association's\n\ntotal liabilities exceed the association's total\n\nassets as calculated in accordance with statutory\n\naccounting principles, or\n\n(2) for an association relying on subsection B of\n\nSection 141.6 of this title, if the association's\n\ntotal liabilities exceed the association's total\n\nassets as calculated in accordance with generally\n\naccepted accounting principles,\n\nb. the business of any such association is being\n\nconducted fraudulently, or\n\nc. the association has knowingly overvalued its assets;\n\n9. \"Insurer\" means any property or casualty insurer duly\n\nauthorized to transact such business in this state;\n\n10. \"Motor vehicle ancillary service\" includes any one or more\n\nof the following services:\n\na. repair or replacement of tires and/or wheels on a\n\nmotor vehicle damaged as a result of coming into\n\ncontact with road hazards,\n\nb. the removal of dents, dings or creases on a motor\n\nvehicle that can be repaired using the process of\n\npaintless dent removal without affecting the existing\n\npaint finish and without replacement vehicle body\n\npanels, sanding, bonding or painting,\n\nc. the repair of chips or cracks in or the replacement of\n\nmotor vehicle windshields as a result of damage caused\n\nby road hazards,\n\nd. the replacement of a motor vehicle key or key fob in\n\nthe event that the key or key fob becomes inoperable\n\nor is lost or stolen,\n\ne. payment to or services provided under the terms of an\n\nancillary protection product, or\n\nf. other services which may be approved by the\n\nCommissioner, if not inconsistent with other\n\nprovisions of this act.\n\nA motor vehicle ancillary service does not include repair and/or\n\nreplacement of damage to the interior surfaces of a vehicle, or for\n\nrepair and/or replacement of damage to the exterior paint or finish\n\nof a vehicle; however, such coverage may be offered in connection\n\nwith the sale of a motor vehicle ancillary protection product as\n\ndefined in this section;\n\n11. \"Motor vehicle ancillary protection product\" or \"ancillary\n\nprotection product\" means a protective chemical substance, device or\n\nsystem that:\n\na. is installed on or applied to a motor vehicle,\n\nb. is designed to prevent loss or damage to a motor\n\nvehicle from a specific cause, and\n\nc. includes, within or as an accompaniment to a service\n\nwarranty, a written agreement that provides that, if\n\nthe ancillary protection product fails to prevent loss\n\nor damage to a motor vehicle from a specific cause,\n\nthe provider will pay to or on behalf of the service\n\nwarranty holder specified incidental costs as a result\n\nof the failure of the ancillary protection product to\n\nperform pursuant to the terms of the ancillary\ncompaniment to a service\n\nwarranty, a written agreement that provides that, if\n\nthe ancillary protection product fails to prevent loss\n\nor damage to a motor vehicle from a specific cause,\n\nthe provider will pay to or on behalf of the service\n\nwarranty holder specified incidental costs as a result\n\nof the failure of the ancillary protection product to\n\nperform pursuant to the terms of the ancillary\n\nprotection product warranty. The reimbursement of\n\nincidental cost(s) promised under an ancillary\n\nprotection product warranty must be tied to the\n\npurchase of a physical product that is formulated or\n\ndesigned to make the specified loss or damage from a\n\nspecific cause less likely to occur.\n\nFor purposes of this section, the term ancillary protection\n\nproduct shall include, but not be limited to, protective chemicals,\n\nalarm systems, body-part-marking products, steering locks, window-\n\netch products, pedal and ignition locks, fuel and ignition kill\n\nswitches and electronic, radio or satellite tracking devices.\n\nAncillary protection product does not include fuel additives, oil\n\nadditives or other chemical products applied to the engine,\n\ntransmission, or fuel system of a motor vehicle;\n\n12. \"Net assets\" means the amount by which the total assets of\n\nan association exceed the total liabilities of the association;\n\n13. \"Person\" includes an individual, company, corporation,\n\nassociation, insurer, agent and any other legal entity;\n\n14. \"Provider fee\" means the total consideration received or to\n\nbe received including sales commissions, by whatever name called, by\n\na service warranty association for, or related to, the issuance and\n\ndelivery of a service warranty including any charges designated as\n\nassessments or fees for membership, policy, survey, inspection, or\n\nservice or other charges. However, a repair charge is not a\n\nprovider fee unless it exceeds the usual and customary repair fee\n\ncharged by the association, provided the repair is made before the\n\nissuance and delivery of the warranty;\n\n15. \"Road hazard\" means a hazard that is encountered while\n\ndriving a motor vehicle and which may include, but not be limited\n\nto, potholes, rocks, wood debris, metal parts, glass, plastic, curbs\n\nor composite scraps;\n\n16. \"Sales representative\" means any person utilized by an\n\ninsurer or service warranty association for the purpose of selling\n\nor issuing service warranties;\n\n17. \"Service warranty\" means a contract or agreement for a\n\nseparately stated consideration for a specific duration to perform\n\nthe repair or replacement of property or indemnification for repair\n\nor replacement for the operational or structural failure due to a\n\ndefect or failure in materials or workmanship, with or without\n\nadditional provision for incidental payment of indemnity under\n\nlimited circumstances including, but not limited to, failure due to\n\nnormal wear and tear, towing, rental and emergency road service,\n\nroad hazard, power surge, and accidental damage from handling or as\n\notherwise provided for in the contract or agreement. The term\n\n\"service warranty\" includes a contract or agreement to provide one\n\nor more motor vehicle ancillary service(s) as defined by this\n\nsection. However:\n\na. maintenance service contracts under the terms of which\n\nthere are no provisions for such indemnification are\n\nexpressly excluded from this definition,\n\nb. those contracts issued solely by the manufacturer,\n\ndistributor, importer or seller of the product, or any\n\naffiliate or subsidiary of the foregoing entities,\n\nwhereby such entity has contractual liability\n\ninsurance policies in place, from one or more insurers\n\nlicensed in the state, which collectively cover one\n\nhundred percent (100%) of the claims exposure on all\n\ncontracts written without being predicated on the\n\nfailure to perform under such contracts, are expressly\n\nexcluded from this definition,\n\nc. the term \"service warranty\" does not include service\neby such entity has contractual liability\n\ninsurance policies in place, from one or more insurers\n\nlicensed in the state, which collectively cover one\n\nhundred percent (100%) of the claims exposure on all\n\ncontracts written without being predicated on the\n\nfailure to perform under such contracts, are expressly\n\nexcluded from this definition,\n\nc. the term \"service warranty\" does not include service\n\ncontracts entered into between consumers and nonprofit\n\norganizations or cooperatives the members of which\n\nconsist of condominium associations and condominium\n\nowners, which contracts require the performance of\n\nrepairs and maintenance of appliances or maintenance\n\nof the residential property,\n\nd. the term \"service warranty\" does not include\n\nwarranties, guarantees, extended warranties, extended\n\nguarantees, contract agreements or any other service\n\ncontracts issued by a company which performs at least\n\nseventy percent (70%) of the service work itself and\n\nnot through subcontractors, and which has been selling\n\nand honoring such contracts in this state for at least\n\ntwenty (20) years,\n\ne. the term \"service warranty\" does not include\n\nwarranties, guarantees, extended warranties, extended\n\nguarantees, contract agreements or any other service\n\ncontracts, whether or not such service contracts\n\notherwise meet the definition of service warranty,\n\nissued by a company which has net assets in excess of\n\nOne Hundred Million Dollars ($100,000,000.00). A\n\nservice warranty association may use the net assets of\n\na parent company to qualify under this section if the\n\nnet assets of the company issuing the policy total at\n\nleast Twenty-five Million Dollars ($25,000,000.00) and\n\nthe parent company maintains net assets of at least\n\nSeventy-five Million Dollars ($75,000,000.00) not\n\nincluding the net assets held by the service warranty\n\nassociations,\n\nf. service warranties are not insurance in this state or\n\notherwise regulated under the Insurance Code,\n\ng. motor service club contracts governed under Article 31\n\nof Title 36 of the Oklahoma Statutes are expressly\n\nexcluded from this definition, and\n\nh. home service contracts and home warranties governed\n\nunder Section 6750 et seq. of Title 36 of the Oklahoma\n\nStatutes are expressly excluded from this definition;\n\n18. \"Service warranty association\" or \"association\" means any\n\nperson, other than an authorized insurer, contractually obligated to\n\na service warranty holder under the terms of a service warranty;\n\nprovided, this term shall not mean any person engaged in the\n\nbusiness of erecting or otherwise constructing a new home;\n\n19. \"Warrantor\" means any service warranty association engaged\n\nin the sale of service warranties and deriving not more than fifty\n\npercent (50%) of its gross income from the sale of service\n\nwarranties; and\n\n20. \"Warranty seller\" means any service warranty association\n\nengaged in the sale of service warranties and deriving more than\n\nfifty percent (50%) of its gross income from the sale of service\n\nwarranties.","path":["OK Code","Title 15"],"source_url":"https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os15.pdf","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:36Z","sha256":"7b32730c993f1e21a9d6293c05ef17a78e7de2917314a852da48b7e5136ce2a6","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-15-15-141.19","next":"us-ok/okla.-stat.-tit.-15-15-141.20"},"notice":"GroundRules: Original legal text. Not legal advice."}