Okla. Stat. tit. 15, § 15-141.2

As used in the Service Warranty Act:

1. "Commissioner" means the Insurance Commissioner;

2. "Consumer product" means tangible personal property

primarily used for personal, family, or household purposes;

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3. "Department" means the Insurance Department;

4. "Gross income" means the total amount of revenue received in

connection with business-related activity;

5. "Gross written provider fee" means the total amount of

consideration, inclusive of commissions, paid by a consumer for a

service warranty issued in this state;

6. "Impaired" means having liabilities in excess of assets;

7. "Indemnify" means to undertake repair or replacement of a

consumer product or a newly constructed residential structure

including any appliances, electrical, plumbing, heating, cooling or

air conditioning systems, in return for the payment of a segregated

provider fee, when the consumer product or residential structure

becomes defective or suffers operational failure;

8. "Insolvent" means any actual or threatened delinquency

including, but not limited to, any one or more of the following

circumstances:

a. (1) for an association relying on subsection A of

Section 141.6 of this title, if the association's

total liabilities exceed the association's total

assets as calculated in accordance with statutory

accounting principles, or

(2) for an association relying on subsection B of

Section 141.6 of this title, if the association's

total liabilities exceed the association's total

assets as calculated in accordance with generally

accepted accounting principles,

b. the business of any such association is being

conducted fraudulently, or

c. the association has knowingly overvalued its assets;

9. "Insurer" means any property or casualty insurer duly

authorized to transact such business in this state;

10. "Motor vehicle ancillary service" includes any one or more

of the following services:

a. repair or replacement of tires and/or wheels on a

motor vehicle damaged as a result of coming into

contact with road hazards,

b. the 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 replacement vehicle body

panels, sanding, bonding or painting,

c. the repair of chips or cracks in or the replacement of

motor vehicle windshields as a result of damage caused

by road hazards,

d. the replacement of a motor vehicle key or key fob in

the event that the key or key fob becomes inoperable

or is lost or stolen,

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e. payment to or services provided under the terms of an

ancillary protection product, or

f. other services which may be approved by the

Commissioner, if not inconsistent with other

provisions of this act.

A motor vehicle ancillary service does not include repair and/or

replacement of damage to the interior surfaces of a vehicle, or for

repair and/or replacement of damage to the exterior paint or finish

of a vehicle; however, such coverage may be offered in connection

with the sale of a motor vehicle ancillary protection product as

defined in this section;

11. "Motor vehicle ancillary protection product" or "ancillary

protection product" means a protective chemical substance, device or

system that:

a. is installed on or applied to a motor vehicle,

b. is designed to prevent loss or damage to a motor

vehicle from a specific cause, and

c. includes, within or as an accompaniment to a service

warranty, a written agreement that provides that, if

the ancillary protection product fails to prevent loss

or damage to a motor vehicle from a specific cause,

the provider will pay to or on behalf of the service

warranty holder specified incidental costs as a result

of the failure of the ancillary protection product to

perform pursuant to the terms of the ancillary
companiment to a service

warranty, a written agreement that provides that, if

the ancillary protection product fails to prevent loss

or damage to a motor vehicle from a specific cause,

the provider will pay to or on behalf of the service

warranty holder specified incidental costs as a result

of the failure of the ancillary protection product to

perform pursuant to the terms of the ancillary

protection product warranty. The reimbursement of

incidental cost(s) promised under an ancillary

protection product warranty must be tied to the

purchase of a physical product that is formulated or

designed to make the specified loss or damage from a

specific cause less likely to occur.

For purposes of this section, the term ancillary protection

product shall include, but not be limited to, protective chemicals,

alarm systems, body-part-marking products, steering locks, window-

etch products, pedal and ignition locks, fuel and ignition kill

switches and electronic, radio or satellite tracking devices.

Ancillary protection product does not include fuel additives, oil

additives or other chemical products applied to the engine,

transmission, or fuel system of a motor vehicle;

12. "Net assets" means the amount by which the total assets of

an association exceed the total liabilities of the association;

13. "Person" includes an individual, company, corporation,

association, insurer, agent and any other legal entity;

14. "Provider fee" means the total consideration received or to

be received including sales commissions, by whatever name called, by

a service warranty association for, or related to, the issuance and

delivery of a service warranty including any charges designated as

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assessments or fees for membership, policy, survey, inspection, or

service or other charges. However, a repair charge is not a

provider fee unless it exceeds the usual and customary repair fee

charged by the association, provided the repair is made before the

issuance and delivery of the warranty;

15. "Road hazard" means a hazard that is encountered while

driving a motor vehicle and which may include, but not be limited

to, potholes, rocks, wood debris, metal parts, glass, plastic, curbs

or composite scraps;

16. "Sales representative" means any person utilized by an

insurer or service warranty association for the purpose of selling

or issuing service warranties;

17. "Service warranty" means a contract or agreement for a

separately stated consideration for a specific duration to perform

the repair or replacement of property or indemnification for repair

or replacement for the operational or structural failure due to a

defect or failure in materials or workmanship, with or without

additional provision for incidental payment of indemnity under

limited circumstances including, but not limited to, failure due to

normal wear and tear, towing, rental and emergency road service,

road hazard, power surge, and accidental damage from handling or as

otherwise provided for in the contract or agreement. The term

"service warranty" includes a contract or agreement to provide one

or more motor vehicle ancillary service(s) as defined by this

section. However:

a. maintenance service contracts under the terms of which

there are no provisions for such indemnification are

expressly excluded from this definition,

b. those contracts issued solely by the manufacturer,

distributor, importer or seller of the product, or any

affiliate or subsidiary of the foregoing entities,

whereby such entity has contractual liability

insurance policies in place, from one or more insurers

licensed in the state, which collectively cover one

hundred percent (100%) of the claims exposure on all

contracts written without being predicated on the

failure to perform under such contracts, are expressly

excluded from this definition,

c. the term "service warranty" does not include service
eby such entity has contractual liability

insurance policies in place, from one or more insurers

licensed in the state, which collectively cover one

hundred percent (100%) of the claims exposure on all

contracts written without being predicated on the

failure to perform under such contracts, are expressly

excluded from this definition,

c. the term "service warranty" does not include service

contracts entered into between consumers and nonprofit

organizations or cooperatives the members of which

consist of condominium associations and condominium

owners, which contracts require the performance of

repairs and maintenance of appliances or maintenance

of the residential property,

d. the term "service warranty" does not include

warranties, guarantees, extended warranties, extended

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guarantees, contract agreements or any other service

contracts issued by a company which performs at least

seventy percent (70%) of the service work itself and

not through subcontractors, and which has been selling

and honoring such contracts in this state for at least

twenty (20) years,

e. the term "service warranty" does not include

warranties, guarantees, extended warranties, extended

guarantees, contract agreements or any other service

contracts, whether or not such service contracts

otherwise meet the definition of service warranty,

issued by a company which has net assets in excess of

One Hundred Million Dollars ($100,000,000.00). A

service warranty association may use the net assets of

a parent company to qualify under this section if the

net assets of the company issuing the policy total at

least Twenty-five Million Dollars ($25,000,000.00) and

the parent company maintains net assets of at least

Seventy-five Million Dollars ($75,000,000.00) not

including the net assets held by the service warranty

associations,

f. service warranties are not insurance in this state or

otherwise regulated under the Insurance Code,

g. motor service club contracts governed under Article 31

of Title 36 of the Oklahoma Statutes are expressly

excluded from this definition, and

h. home service contracts and home warranties governed

under Section 6750 et seq. of Title 36 of the Oklahoma

Statutes are expressly excluded from this definition;

18. "Service warranty association" or "association" means any

person, other than an authorized insurer, contractually obligated to

a service warranty holder under the terms of a service warranty;

provided, this term shall not mean any person engaged in the

business of erecting or otherwise constructing a new home;

19. "Warrantor" means any service warranty association engaged

in the sale of service warranties and deriving not more than fifty

percent (50%) of its gross income from the sale of service

warranties; and

20. "Warranty seller" means any service warranty association

engaged in the sale of service warranties and deriving more than

fifty percent (50%) of its gross income from the sale of service

warranties.