New York Laws
Article 79 - Service Contracts
7902 - Definitions.

(a) "Appliances" may include but are not limited to electrical or
mechanical appliances sold separately or included with the sale of
residential real property such as refrigerators, stoves, ovens, clothes
washers and dryers and dishwashers.
(b) "Administrator" means any person designated by a provider to be
responsible for administration of service contracts, including
servicing, claims management and processing, recordkeeping, customer
service and collection of fees.
(c) "Incidental damages" has the meaning as set forth in subdivision
one of section 2-715 of the uniform commercial code, as such definition
may be amended from time to time.
(d) "Maintenance agreement" means a contract of limited duration that
provides for scheduled maintenance of property, other than contracts
providing for the repair or replacement of such property due to a defect
in materials or workmanship or wear and tear.
(e) "Non-original manufacturers' parts" means replacement parts not
made for or by the original manufacturer of the property, commonly
referred to as "after market parts".
(f) "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.
(g) "Premium" means the consideration paid to an insurer for a service
contract reimbursement insurance policy.
(h) "Provider" means a person who markets, sells, offers for sale,
issues, makes or proposes to make or administers a service contract, and
who is contractually obligated to provide service under a service
contract.
(i) "Provider fee" means the total purchase price or consideration
paid for a service contract.
(j) "Qualified United States financial institution" has the meaning
set forth in the regulations as promulgated from time to time by the
superintendent.
(k) "Service contract" means a contract or agreement, for a separate
or additional consideration, for a specific duration to perform the
repair, replacement or maintenance of property, or indemnification for
repair, replacement or maintenance, due to a defect in materials or
workmanship or wear and tear, with or without additional provision for
indemnity payments for incidental damages, provided any such indemnity
payment per incident shall not exceed the purchase price of the property
serviced. Service contracts may include towing, rental and emergency
road service, and may also provide for the repair, replacement or
maintenance of property for damage resulting from power surges and
accidental damage from handling. Service contracts may also include
contracts to repair, replace or maintain residential appliances and
systems. Such term shall also mean a contract or agreement made (1) by
or for the manufacturer or seller of a motor vehicle tire for repair or
replacement of the tire or wheel as the result of damage arising from a
road hazard, (2) by or for the supplier or seller of a service for
repair of chips or cracks in a motor vehicle windshield, but not
including services that involve the replacement of the entire
windshield, (3) by or for the supplier or seller of a service for repair
or removal of dents, dings or creases from a motor vehicle without
affecting the existing paint finish using paintless dent repair
techniques, but not including services that involve the replacement of
vehicle body panels, or sanding, bonding or painting; and (4) by or for
the supplier or seller of a service for repair or replacement of a motor

vehicle key or key fob in the event that the key or key fob becomes
inoperable, lost or stolen. In conjunction with a motor vehicle leased
for personal use, such term shall also mean a contract to perform the
repair, replacement or maintenance of property, or to provide
indemnification for repair, replacement or maintenance, due to excess
wear and use or damage for interior stains, rips or scratches or missing
interior parts that result in a lease-end charge not otherwise covered
by a service agreement or warranty, provided any such payment shall not
exceed the purchase price of the vehicle.
(l) "Systems" means plumbing, electrical, heating, cooling,
ventilation, and other systems used in residential real property,
including without limitation:
(A) plumbing systems which include gas supply lines and fittings,
water supply, waste and vent pipes and their fittings, septic tanks and
their drain fields, water, gas and sewer service piping, and their
extensions to the tie-in of a public utility connection, or on-site well
and sewage disposal system;
(B) electrical systems which include all wiring, electrical boxes,
switches, outlets, and connections up to the public utility connection;
and
(C) heating, cooling and ventilation systems which include all duct
work, steam, water and refrigerant lines, registers, convectors,
radiation elements and dampers.
(m) "Service contract holder" or "contract holder" means a person who
is the purchaser or holder of a service contract.
(n) "Service contract reimbursement insurance policy" means a policy
of service contract reimbursement insurance.