§ 36-6752. Definitions.

As used in the Oklahoma Home Service Contract Act:

1.  “Administrator” means the person who is responsible for the administration of home service contracts or the home service contracts plan, who may promote the contract under their own private label or brand as long as the provider is clearly identified on the contract, or who is responsible for any submission required by the Oklahoma Home Service Contract Act;

2.  “Commissioner” means the Insurance Commissioner;

3.  “Consumer” means a natural person who buys other than for purposes of resale any tangible personal property that is distributed in commerce and that is normally used for personal, family or household purposes and not for business or research purposes;

4.  “Maintenance agreement” means a contract of limited duration that provides for scheduled maintenance only and does not include repair or replacement;

5.  “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;

6.  “Provider” means the person who is the contractually named obligor to the home service contract holder under the terms of the service contract;

7.  “Provider fee” means the consideration paid for a home service contract;

8.  “Reimbursement insurance policy” means a policy of insurance issued to a provider to either provide reimbursement to the provider under the terms of the insured home service contracts issued or sold by the provider or, in the event of the provider’s nonperformance, to pay on behalf of the provider all covered contractual obligations incurred by the provider under the terms of the insured home service contracts issued or sold by the provider;

9.  “Home service contract” or “home warranty” means a contract or agreement for a separately stated consideration for a specific duration to perform the service, repair, replacement or maintenance of property or indemnification for service, repair, replacement or maintenance, for the operational or structural failure of any residential property due to a defect in materials, workmanship, inherent defect or normal wear and tear, with or without additional provisions for incidental payment or indemnity under limited circumstances.  Home service contracts may provide for the service, repair, replacement, or maintenance of property for damage resulting from power surges or interruption and accidental damage from handling and may provide for leak or repair coverage to house roofing systems.  Home service contracts are not insurance in this state or otherwise regulated under the Insurance Code;

10.  “Service contract holder” or “contract holder” means a person who is the purchaser or holder of a home service contract; and

11.  “Warranty” means a warranty made solely by the manufacturer, importer or seller of property or services, including builders on new home construction, without consideration, that is not negotiated or separated from the sale of the product and is incidental to the sale of the product, 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.

Added by Laws 2011, c. 224, § 3, eff. Nov. 1, 2011.