Section 1. As used in this chapter, the following words shall, unless the context otherwise requires, have the following meanings:—
“Administrator”, a third party other than the warrantor who is designated by the warrantor to be responsible for the administration of its vehicle protection product warranties.
“Incidental costs”, expenses specified in the vehicle protection product warranty and incurred by the warranty holder that relate to the failure of the vehicle protection product to perform as provided in the warranty. Incidental costs may include 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.
“Vehicle protection product”, a vehicle protection device, system or service installed on or applied to a vehicle that is designed to prevent loss or damage to a vehicle from a specific cause, and sold with a vehicle protection product warranty. Such products include, but are not limited to, alarm systems, body part marking products, steering locks, window etch products, pedal and ignition locks, fuel and ignition kill switches and electronic, radio and satellite tracking devices.
“Vehicle protection product warranty”, a written warranty by a warrantor that provides for the payment of incidental costs or the provision of services by the warrantor to or for the benefit of the warranty holder if the vehicle protection product fails to prevent loss or damage to a vehicle from a specific cause.
“Warrantor”, a person who is contractually obligated to the warranty holder under the terms of the vehicle protection product warranty. Warrantor does not include an authorized insurer.
“Warranty holder”, a person who purchases a vehicle protection product warranty or to whom it is transferred under the terms of the warranty.
“Warranty reimbursement insurance policy”, a policy of insurance issued to a warrantor to provide reimbursement to the warrantor consistent with the terms of its vehicle protection product warranties and provide direct payment of incidental costs or provision of services to the warranty holder on behalf of the warrantor if the warrantor fails to perform as obligated under the terms of the vehicle protection product warranty within 60 days of a request for payment or services.