2023 New York Laws › ISC - Insurance › Article 79 - Service Contracts › 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.