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The 192nd General Court of the Commonwealth of Massachusetts

Section 149M: Definitions applicable to Secs. 149M to 149X

Section 149M. As used in sections 149M to 149X, inclusive, the following words shall, unless the context clearly requires otherwise, have the following meanings:—

''Administrator'', the person who is responsible for the administration of the service contracts or the service contracts plan.

''Consumer'', an individual who purchases, other than for purposes of resale, tangible personal property used for personal, family or household purposes.

''NAIC'', the National Association of Insurance Commissioners.

''Person'', a natural person, corporation, association, partnership or other legal entity.

''Premium'', the consideration paid to an insurer for a reimbursement insurance policy.

''Provider'', a person who is contractually obligated to the service contract holder under the terms of the service contract.

''Reimbursement insurance policy'', a policy of insurance issued to a provider to either provide reimbursement to the provider under the terms of the insured 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 service contracts issued or sold by the provider.

''Service contract'', a contract for a separately stated consideration and for a specific duration to perform the service, repair, replacement or maintenance of tangible personal property or indemnification for service, repair, replacement or maintenance, for the operational or structural failure due to a defect in materials or workmanship or normal wear and tear, with or without additional provision for incidental payment or indemnity under limited circumstances, for related expenses, including, but not limited to, rental and food spoilage.

''Service contract holder'', a consumer who is in possession of a service contract.

''Warranty'', a guarantee incidental to the sale of the product made solely by the manufacturer, importer or seller of property or services; provided, however that consideration that is negotiated or separated from 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 shall not be included within the definition of ''warranty''.