385.403. Definitions.

MISSOURI STATUTES AND CODES

Definitions.

385.403. As used in sections 385.400 to 385.436, the following termsshall mean:

(1) "Administrator", a third party other than the warrantor who isdesignated by the warrantor to be responsible for the administration ofvehicle protection product warranties;

(2) "Department", the department of insurance, financial institutionsand professional registration;

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

(4) "Incidental costs", expenses specified in the warranty incurredby the warranty holder related to the failure of the vehicle protectionproduct to perform as provided in the warranty. Incidental costs mayinclude, without limitation, insurance policy deductibles, rental vehiclecharges, the difference between the actual value of the stolen vehicle atthe time of theft and the cost of a replacement vehicle, sales taxes,registration fees, transaction fees, and mechanical inspection fees;

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

(6) "Service contract", a contract or agreement for a separatelystated consideration or for a specific duration to perform the repair,replacement, or maintenance of a motor vehicle or indemnification forrepair, replacement, or maintenance, for the operational or structuralfailure due to a defect in materials, workmanship, or normal wear and tear,with or without additional provision for incidental payment of indemnityunder limited circumstances, including but not limited to towing, rental,and emergency road service, but does not include mechanical breakdowninsurance or maintenance agreements;

(7) "Vehicle protection product", a vehicle protection device,system, or service that:

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

(b) Is designed to prevent loss or damage to a vehicle from aspecific cause; and

For purposes of sections 385.400 to 385.436, the term "vehicle protectionproduct" shall include, without limitation, alarm systems, body partmarking products, steering locks, window etch products, pedal and ignitionlocks, fuel and ignition kill switches, and electronic, radio, andsatellite tracking devices;

(8) "Vehicle protection product warranty" or "warranty", a writtenagreement by a warrantor that provides that if the vehicle protectionproduct fails to prevent loss or damage to a vehicle from a specific cause,then the warranty holder shall be paid specified incidental costs by thewarrantor as a result of the failure of the vehicle protection product toperform pursuant to the terms of the warranty. Incidental costs may bereimbursed under the provisions of the warranty in either a fixed amountspecified in the warranty or sales agreement or by the use of a formulaitemizing specific incidental costs incurred by the warranty holder;

(9) "Vehicle protection product warrantor" or "warrantor", a personwho is contractually obligated to the warranty holder under the terms ofthe vehicle protection product warranty agreement. "Warrantor" does notinclude an authorized insurer providing a warranty reimbursement insurancepolicy;

(10) "Warranty holder", the person who purchases a vehicle protectionproduct or who is a permitted transferee;

(11) "Warranty reimbursement insurance policy", a policy of insurancethat is issued to the vehicle protection product warrantor to providereimbursement to the warrantor or to pay on behalf of the warrantor allcovered contractual obligations incurred by the warrantor under the termsand conditions of the insured vehicle protection product warranties sold bythe warrantor.