Section 407.2060

Title XXVI TRADE AND COMMERCE

Chapter 407

Effective - 28 Aug 2023   

  407.2060.  Definitions. — For purposes of sections 407.2060 to 407.2075, the following terms mean:

  (1)  "Administrator", any person who is responsible for the administrative or operational functions of vehicle value protection agreements including, but not limited to, the adjudication of claims or benefit requests by contract holders;

  (2)  "Contract holder", a person who is the purchaser or holder of a vehicle value protection agreement;

  (3)  "Provider", a person who is obligated to provide a benefit under a vehicle value protection agreement.  A provider may perform as an administrator or retain the services of a third-party administrator;

  (4)  "Vehicle value protection agreement", a contractual agreement that:

  (a)  Provides a benefit toward the reduction of some or all of the contract holder's current finance agreement deficiency balance or toward the purchase or lease of a replacement motor vehicle or motor vehicle services upon the occurrence of an adverse event to the motor vehicle including, but not limited to, loss, theft, damage, obsolescence, diminished value, or depreciation;

  (b)  Does not include debt waivers; and

  (c)  May include agreements such as, but not limited to, trade-in-credit agreements, diminished value agreements, depreciation benefit agreements, or other similarly named agreements.

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(L. 2023 S.B. 398)