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MISSOURI STATUTES AND CODES

385.300. Definitions.

Definitions.

385.300. As used in sections 385.300 to 385.320, the following termsmean:

(1) "Administrator", the person who is responsible for the handlingand adjudication of claims under the product service agreements;

(2) "Consumer", a natural person who buys other than for purposes ofresale any tangible personal property that is distributed in commerce andthat is normally used for personal, family, or household purposes and notfor business or research purposes;

(3) "Contract holder", a person who is the purchaser or holder of aservice contract;

(4) "Director", the director of the department of insurance,financial institutions, and professional registration;

(5) "Maintenance agreement", a contract of limited duration thatprovides for scheduled maintenance only;

(6) "Manufacturer", any of the following:

(a) A person who manufactures or produces the property and sells theproperty under the person's own name or label;

(b) A subsidiary of the person who manufacturers or produces theproperty;

(c) A person who owns one hundred percent of the entity thatmanufactures or produces the property;

(d) A person that does not manufacture or produce the property, butthe property is sold under its trade name label;

(e) A person who manufactures or produces the property and theproperty is sold under the trade name or label of another person;

(f) A person who does not manufacture or produce the property but,under a written contract, licenses the use of its trade name or label toanother person who sells the property under the licensor's trade name orlabel;

(7) "Nonoriginal manufacturer's parts", replacement parts not madefor or by the original manufacturer of the property, commonly referred toas after-market parts;

(8) "Person", an individual, partnership, corporation, incorporatedor unincorporated association, joint stock company, reciprocal, syndicate,or any similar entity or combination of entities acting in concert;

(9) "Premium", the consideration paid to an insurer for areimbursement insurance policy;

(10) "Property", all forms of property;

(11) "Provider", a person who is contractually obligated to theservice contract holder under the terms of a service contract;

(12) "Provider fee", the consideration paid for a service contract,if any, by a service contract holder;

(13) "Reimbursement insurance policy", a policy of insurance issuedto a provider and under which the insurer agrees, for the benefit of theservice contract holders, to discharge all of the obligations andliabilities of the provider under the terms of the service contracts in theevent of nonperformance by the provider. All obligations and liabilitiesinclude, but are not limited to, failure of the provider to perform underthe service contract and the return of the unearned provider fee in theevent of the provider's unwillingness or inability to reimburse theunearned provider fee in the event of termination of a service contract;

(14) "Service contract", a contract for a specific duration andconsideration to perform the repair, replacement, or maintenance ofproperty or indemnification for repair, replacement, or maintenance, forthe operational or structural failure of any residential or other propertydue to a defect in materials, workmanship, or normal wear and tear, with orwithout additional provision for incidental payment of indemnity underlimited circumstances, including, but not limited to, unavailability ofparts, obsolescence, food spoilage, rental, and shipping. Servicecontracts may provide for the repair, replacement or maintenance ofproperty for damage resulting from power surges or accidental damage.Service contract providers and administrators are not deemed to be engagedin the business of insurance in this state;

(15) "Warranty", a warranty made solely by the manufacturer,importer, or seller of property or services without charge, that is notnegotiated or separated from the sale of the product and is incidental tothe sale of the product, that guarantees indemnity for defective parts,mechanical or electrical breakdown, labor, or other remedial measures, suchas repair or replacement of the property or repetition of services.

(L. 2007 H.B. 221)

Effective 1-01-08

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