§ 14-4A-01
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/md/commercial-law/14-4a-01·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
§14–4A–01.
(a)In this subtitle the following words have the meanings indicated.
(b)“Administrator” means a person that is designated by a warrantor to be responsible for the administration of a vehicle protection product warranty.
(c)“Division” means the Division of Consumer Protection of the Office of the Attorney General.
(1)“Incidental costs” means an expense that:
(i)Is specified in a vehicle protection product warranty;
(ii)Is incurred by the warranty holder; and
(iii)Relates to the failure of a vehicle protection product to perform as provided in the vehicle protection product warranty.
(2)“Incidental costs” include:
(i)Insurance policy deductibles;
(ii)Charges for rental vehicles;
(iii)The difference between the value of a stolen vehicle at the time of theft and the cost of a replacement vehicle;
(iv)Sales taxes;
(v)Registration fees;
(vi)Transaction fees; and
(vii)Mechanical inspection fees.
(1)“Vehicle protection product” means a vehicle protection device, system, or service that:
(i)Is sold with a written warranty;
(ii)Is installed on or applied to a vehicle; and
(iii)Is designed to prevent loss or damage to a vehicle from a specific cause.
(2)“Vehicle protection product” includes:
(i)An alarm system;
(ii)A body part marking product;
(iii)A steering lock;
(iv)A window etch product;
(v)A pedal or ignition lock;
(vi)A fuel or ignition kill switch; and
(vii)An electronic, radio, or satellite tracking device.
(f)“Vehicle protection product warranty” means a written agreement by a warrantor that provides that if a vehicle protection product fails to prevent loss or damage to a vehicle from a specific cause, the warrantor shall pay to, or on behalf of, the warranty holder specified incidental costs incurred as a result of the failure of the vehicle protection product to perform in accordance with the terms of the vehicle protection product warranty.
(1)“Warrantor” means a person that is contractually obligated to the warranty holder under the terms of the vehicle protection product warranty.
(2)“Warrantor” does not include an authorized insurer that issues a warranty reimbursement insurance policy.
(h)“Warranty holder” means a person that purchases a vehicle protection product warranty or a permitted transferee.
(i)“Warranty reimbursement insurance policy” means a policy of insurance that is issued to a warrantor to:
(1)Provide reimbursement to the warrantor; or
(2)Pay on behalf of the warrantor all covered contractual obligations incurred by the warrantor under the terms and conditions of the insured vehicle protection product warranties sold by the warrantor.