TITLE 41

INSURANCE

CHAPTER 62

IDAHO MOTOR VEHICLE SERVICE CONTRACT ACT

41-6203.  definitions. As used in this chapter:

(1)  "Administrator" means the person responsible for the administration of the motor vehicle service contract;

(2)  "Director" means the director of the Idaho department of insurance;

(3)  "Incidental costs" means expenses specified in a theft protection program warranty that are incurred by the warranty holder due to the failure of a theft protection program to perform as provided in the contract. Incidental costs may include, without limitation, insurance policy deductibles, rental vehicle charges, the difference between the actual value of the stolen vehicle at the time of theft and the cost of a replacement vehicle, sales taxes, registration fees, transaction fees and mechanical inspection fees. Incidental costs may be reimbursed in either a fixed amount specified in the theft protection program warranty or by use of a formula itemizing specific incidental costs incurred by the warranty holder;

(4)  "Liability insurance policy" means a policy of insurance providing coverage for all contractual obligations incurred by a motor vehicle service contract provider under the terms of a motor vehicle service contract issued or sold by the motor vehicle service contract provider;

(5)  "Maintenance agreement" means a contract of limited duration that provides scheduled maintenance only;

(6)  "Mechanical breakdown insurance" means a policy, contract or agreement that undertakes to perform or provide repair or replacement service, or indemnification for such service, for the operational or structural failure of a motor vehicle due to defect in materials or workmanship or normal wear and tear and that is issued by an insurance company authorized to do business in this state;

(7)  "Motor vehicle service contract" means a contract or agreement given for separately stated consideration that undertakes to perform or provide repair or replacement service, or indemnification for such service, for the operational or structural failure of a motor vehicle due to defect in materials or workmanship or normal wear and tear but shall not include mechanical breakdown insurance. A motor vehicle service contract may provide full or partial reimbursement for other expenses incurred by the motor vehicle service contract holder as a direct and proximate result of an operational or structural failure or reduced operating efficiency if included in the contract coverage, including but not limited to towing, rental car, lodging, motor club, maintenance benefits, roadside assistance and meal expenses. An agreement whereby an employer or a third party contracted by the employer provides mileage reimbursement and incidental maintenance and repairs to its employees for personal vehicles used for business purposes, which agreement shall not be considered a motor vehicle service contract or a contract of insurance. "Motor vehicle service contract" also means a contract or agreement that provides one (1) or more of the following:

(a)  The repair or replacement of tires, wheels or tires and wheels on a motor vehicle damaged as a result of coming into contact with road hazards;

(b)  The removal of dents, dings or creases on a motor vehicle that can be repaired using the process of paintless dent removal without affecting the existing paint finish and without replacing vehicle body panels, sanding, bonding or painting;

(c)  The repair of chips or cracks in or the replacement of motor vehicle windshields as a result of damage caused by road hazards; or

(d)  The replacement of a motor vehicle key or key fob in the event that the key or key fob becomes inoperable or is lost or stolen;

(8)  "Motor vehicle service contract holder" means a person who purchases a motor vehicle service contract or is a permitted transferee;

(9)  "Motor vehicle service contract provider" means a person who is contractually obligated to a motor vehicle service contract holder under the terms of a motor vehicle service contract;

(10) "Person" means an individual, company, association, organization, partnership, business trust, corporation or any other form of legal entity;

(11) "Road hazard" means a hazard encountered while driving a motor vehicle and may include, but not be limited to, potholes, rocks, wood debris, metal parts, glass, plastic, curbs or composite scraps;

(12) "Theft protection program" means a device or system that:

(a)  Is installed on or applied to a motor vehicle;

(b)  Is designed to prevent loss or damage to a motor vehicle from theft; and

(c)  Includes a theft protection program warranty.

The term shall include, but not be limited to, alarm systems, body part marking products, steering locks, window etch products, pedal and ignition locks, fuel and ignition kill switches, and electronic, radio and satellite tracking devices. The term does not include fuel additives, oil additives or other chemical products applied to the engine, transmission or fuel system, or to interior or exterior surfaces of a motor vehicle;

(13) "Theft protection program warranty" means a written agreement by a warrantor that provides, if a theft protection program fails to prevent loss or damage to a motor vehicle from theft, the warrantor will pay to or on behalf of the warranty holder specified incidental costs as a result of the failure of the theft protection program to perform pursuant to the terms of the theft protection program warranty.

History:

[41-6203, added 2018, ch. 116, sec. 2, p. 242.]