The definitions in this
section apply throughout this chapter.
(1) "Administrator" means the person who is responsible for
the administration of the service contracts, the service
contracts plan, or the protection product guarantees.
(2) "Commissioner" means the insurance commissioner of this
state.
(3) "Consumer" means an individual who buys any tangible
personal property that is primarily for personal, family, or
household use.
(4) "Incidental costs" means expenses specified in the
guarantee incurred by the protection product guarantee holder
related to damages to other property caused by the failure of the
protection product to perform as provided in the guarantee.
"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 paid under the provisions of the
protection product guarantee in either a fixed amount specified
in the protection product guarantee or sales agreement, or by the
use of a formula itemizing specific incidental costs incurred by
the protection product guarantee holder to be paid.
(5) "Protection product" means any product offered or sold
with a guarantee to repair or replace another product or pay
incidental costs upon the failure of the product to perform
pursuant to the terms of the protection product guarantee.
(6) "Protection product guarantee" means a written agreement
by a protection product guarantee provider to repair or replace
another product or pay incidental costs upon the failure of the
protection product to perform pursuant to the terms of the
protection product guarantee.
(7) "Protection product guarantee provider" means a person
who is contractually obligated to the protection product
guarantee holder under the terms of the protection product
guarantee. Protection product guarantee provider does not
include an authorized insurer providing a reimbursement insurance
policy.
(8) "Protection product guarantee holder" means a person who
is the purchaser or permitted transferee of a protection product
guarantee.
(9) "Protection product seller" means the person who sells
the protection product to the consumer.
(10) "Maintenance agreement" means a contract of limited
duration that provides for scheduled maintenance only.
(11) "Motor vehicle" means any vehicle subject to
registration under chapter 46.16 RCW.
(12) "Person" means an individual, partnership, corporation,
incorporated or unincorporated association, joint stock company,
reciprocal insurer, syndicate, or any similar entity or
combination of entities acting in concert.
(13) "Premium" means the consideration paid to an insurer
for a reimbursement insurance policy.
(14) "Provider fee" means the consideration paid by a
consumer for a service contract.
(15) "Reimbursement insurance policy" means a policy of
insurance that is issued to a service contract provider or a
protection product guarantee provider to provide reimbursement to
the service contract provider or the protection product guarantee
provider or to pay on behalf of the service contract provider or
the protection product guarantee provider all contractual
obligations incurred by the service contract provider or the
protection product guarantee provider under the terms of the
insured service contracts or protection product guarantees issued
or sold by the service contract provider or the protection
product guarantee provider.
(16) "Service contract" means a contract or agreement for
consideration over and above the lease or purchase price of the
property for a specific duration to perform the repair,
replacement, or maintenance of property or the indemnification
for repair, replacement, or maintenance for operational or
structural failure due to a defect in materials or workmanship,
or normal wear and tear. Service contracts may provide for the
repair, replacement, or maintenance of property for damage
resulting from power surges and accidental damage from handling,
with or without additional provision for incidental payment of
indemnity under limited circumstances, including towing, rental,
emergency road services, or other expenses relating to the
failure of the product or of a component part thereof.
(17) "Service contract holder" or "contract holder" means a
person who is the purchaser or holder of a service contract.
(18) "Service contract provider" means a person who is
contractually obligated to the service contract holder under the
terms of the service contract.
(19) "Service contract seller" means the person who sells
the service contract to the consumer.
(20) "Warranty" means a warranty made solely by the
manufacturer, importer, or seller of property or services without
consideration; that is not negotiated or separated from the sale
of the product and is incidental to the sale of the product; and
that guarantees indemnity for defective parts, mechanical or
electrical breakdown, labor, or other remedial measures, such as
repair or replacement of the property or repetition of services.
(21) "Home heating fuel service contract" means a contract
or agreement for a separately stated consideration for a specific
duration to perform the repair, replacement, or maintenance of a
home heating fuel supply system including the fuel tank and all
visible pipes, caps, lines, and associated parts or the
indemnification for repair, replacement, or maintenance for
operational or structural failure due to a defect in materials or
workmanship, or normal wear and tear.
[2006 c 274 § 3; 2006 c 36 § 17; 2000 c 208 § 2; 1999 c 112 § 3.]
NOTES:
Reviser's note: This section was amended by 2006 c 36 § 17 and by 2006 c 274 § 3, each without reference to the other. Both amendments are incorporated in the publication of this section under RCW 1.12.025(2). For rule of construction, see RCW 1.12.025(1).
Severability -- 2006 c 36: See RCW 48.111.901.