Ind. Code § 27-1-43.2-7
This is the official text of Ind. Code § 27-1-43.2-7, part of Indiana’s Code — part of the compiled statutory law of Indiana, published by the state as "Code." Browse the sections below, each linked to its official government source.
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"Service contract"
Official statutory text
Sec. 7. (a) As used in this chapter, "service contract" means an agreement:
(1) that is effective for a specified period; and
(2) under which a provider:
(A) receives consideration that is separate from the lease or purchase price of a motor vehicle; and
(B) agrees to provide the performance, or indemnification for the cost of performance, of the repair, replacement, or maintenance of a motor vehicle related to the operational or structural failure of the motor vehicle due to a defect in materials or workmanship, accidental damage, normal wear and tear, or damage resulting from a power surge or interruption.
A service contract may also provide for the incidental payment of indemnity under limited circumstances, including indemnity for towing, temporary replacement motor vehicle rental, and emergency road service.
(b) The repair, replacement, or maintenance described in subsection (a)(2)(B) includes the following:
(1) Repair or replacement of tires or wheels on a motor vehicle damaged as a result of road hazards.
(2) Removal of dents, dings, or creases on a motor vehicle that can be repaired using the process of paintless dent removal without affecting the existing paint finish and without replacing vehicle body panels, sanding, bonding, or painting.
(3) Repair of chips or cracks in, or replacement of, motor vehicle windshields as a result of damage caused by road hazards.
(4) Replacement of an inoperable, lost, or stolen motor vehicle key or keyfob.
(5) Payment of specified incidental costs resulting from failure of an ancillary protection product to perform as specified.
(6) Payment related to other products and services approved by the commissioner and consistent with this chapter.
(c) A service contract may not include coverage:
(1) for the:
(A) repair of damage to;
(B) replacement of; or
(C) repair of damage to and replacement of;
the interior surfaces of a vehicle; or
(2) for the:
(A) repair of damage to;
(B) replacement of; or
(C) repair of damage to and replacement of;
the exterior paint or finish of a vehicle.
However, coverage described in subdivision (1) or (2) may be offered in connection with the sale of an ancillary protection product as defined in section 1 of this chapter.
(d) "Service contract" does not include an insurance policy that:
(1) is issued by an insurer authorized to engage in the insurance business in Indiana; and
(2) provides coverage for repair, replacement, or maintenance described in subsection (a)(2)(B).
As added by P.L.129-2014, SEC.10.
(1) that is effective for a specified period; and
(2) under which a provider:
(A) receives consideration that is separate from the lease or purchase price of a motor vehicle; and
(B) agrees to provide the performance, or indemnification for the cost of performance, of the repair, replacement, or maintenance of a motor vehicle related to the operational or structural failure of the motor vehicle due to a defect in materials or workmanship, accidental damage, normal wear and tear, or damage resulting from a power surge or interruption.
A service contract may also provide for the incidental payment of indemnity under limited circumstances, including indemnity for towing, temporary replacement motor vehicle rental, and emergency road service.
(b) The repair, replacement, or maintenance described in subsection (a)(2)(B) includes the following:
(1) Repair or replacement of tires or wheels on a motor vehicle damaged as a result of road hazards.
(2) Removal of dents, dings, or creases on a motor vehicle that can be repaired using the process of paintless dent removal without affecting the existing paint finish and without replacing vehicle body panels, sanding, bonding, or painting.
(3) Repair of chips or cracks in, or replacement of, motor vehicle windshields as a result of damage caused by road hazards.
(4) Replacement of an inoperable, lost, or stolen motor vehicle key or keyfob.
(5) Payment of specified incidental costs resulting from failure of an ancillary protection product to perform as specified.
(6) Payment related to other products and services approved by the commissioner and consistent with this chapter.
(c) A service contract may not include coverage:
(1) for the:
(A) repair of damage to;
(B) replacement of; or
(C) repair of damage to and replacement of;
the interior surfaces of a vehicle; or
(2) for the:
(A) repair of damage to;
(B) replacement of; or
(C) repair of damage to and replacement of;
the exterior paint or finish of a vehicle.
However, coverage described in subdivision (1) or (2) may be offered in connection with the sale of an ancillary protection product as defined in section 1 of this chapter.
(d) "Service contract" does not include an insurance policy that:
(1) is issued by an insurer authorized to engage in the insurance business in Indiana; and
(2) provides coverage for repair, replacement, or maintenance described in subsection (a)(2)(B).
As added by P.L.129-2014, SEC.10.
Status: in_force · Read it on the official government site
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