Arkansas Code
Chapter 114 - Service Contracts Act
§ 4-114-102. Scope and purpose

(a) The purpose of this chapter is to:
(1) Create a legal framework within which service contracts are defined, may be sold, and are regulated in this state;
(2) Add significant consumer protections; and
(3) Eliminate unnecessary administration.

(b) A service contract under § 4-114-103 is not insurance and is not subject to the Arkansas Insurance Code.
(c) This chapter does not apply to:
(1) Warranties;
(2) Maintenance agreements;
(3) Commercial transactions;
(4) A person or entity or the affiliate of a person or entity licensed or certificated by the Arkansas Public Service Commission or the Federal Communications Commission with respect to warranties, service contracts, or maintenance agreements covering wiring, transmission devices, equipment, or services offered or provided by the person, entity, or affiliate to its customers;
(5) Service contracts sold or offered for sale to persons other than consumers;
(6) Motor vehicle service contracts as defined in and regulated pursuant to the Motor Vehicle Service Contract Act, § 4-90-501 et seq.; or
(7) Mechanical breakdown insurance.

(d) Manufacturer's service contracts on the manufacturer's products are subject only to §§ 4-114-106(a), 4-114-106(d)-(g), 4-114-107, and 4-114-111.
(e) Other than mechanical breakdown insurance, the types of agreements referred to in subsections (c) and (d) of this section and service contracts governed under this chapter are not insurance and are not subject to compliance with any provision of the insurance laws of this state.