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054.00.91-3. Definitions.

AR ADC 054.00.91-3Arkansas Administrative Code

West's Arkansas Administrative Code
Title 054. Insurance Department
Division 00.
Rule 91. Creating a Legal Framework Within Which Service Contracts Are Defined, Sold and Regulated
Ark. Admin. Code 054.00.91-3
054.00.91-3. Definitions.
Currentness
A. “Administrator” means the person who is responsible for the administration of a service contract;
B. “Commissioner” means the Insurance Commissioner of the State of Arkansas;
C. “Consumer” means an individual 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 resale purposes;
D. “Person” means an individual, a partnership, a corporation, an incorporated or unincorporated association, a joint stock company, a reciprocal, a syndicate, or any similar entity or combination of entities acting in concert;
E. “Premium” means the consideration paid to an insurer for a reimbursement insurance policy;
F. “Provider” means a person who is contractually obligated to the service contract holder under the terms of the service contract;
G. “Provider fee” means the consideration paid for a service contract;
H. “Reimbursement insurance policy” means a policy of insurance issued to a provider to either:
(i) Provide reimbursement to the provider under the terms of the insured service contracts issued or sold by the provider; or
(ii) 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 service contracts issued or sold by the provider;
I. “Service contract” means a contract or an agreement for a separately stated consideration and 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 property due to a defect in materials, workmanship, or normal wear and tear, with or without additional provision for incidental payment of indemnity under limited circumstances, including without limitation, unavailability of parts, obsolescence, food spoilage, rental, or shipping.
(i) “Service contract” does not include mechanical breakdown insurance or maintenance agreements.
(ii) A service contract may provide for the repair, replacement, or maintenance of property for damage resulting from power surges or accidental damage from handling.
(iii) A service contract is not insurance in this state or otherwise regulated under the Arkansas Insurance Code; and
J. “Service contract holder” means a person who is the purchaser or holder of a service contract.
Current with amendments received through February 15, 2024. Some sections may be more current, see credit for details.
Ark. Admin. Code 054.00.91-3, AR ADC 054.00.91-3
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