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concerning service contracts, and supplementing and amending P.L.1980, c.125.
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by the Senate and General Assembly of the State of New Jersey:
C.56:12-87 Definitions relative to service contracts.
1. As used in this act:
"Administrator" means a person who performs the third-party administration of a service
contract, pursuant to the provisions of section 5 of this act, on behalf of a provider.
"Consumer" means a natural person who buys other than for purposes of resale any
property that is distributed in commerce and that is normally used for personal, family, or
household purposes and not for business or research purposes.
“Director” means the Director of the Division of Consumer Affairs in the Department of
Law and Public Safety.
“Emergency, life safety, or property safety goods” means any goods provided for
installation in, as part of, or for addition to, a system designed to prevent, respond to, alert
regarding, suppress, control, or extinguish an emergency or the cause of an emergency, or
assist evacuation in the event of an emergency, which emergency could threaten life or
property. Examples of these systems include fire alarm, fire sprinkler, fire suppression, fire
extinguisher, security, gas detection, intrusion detection, access control, video surveillance
and recording, mass notification, public address, emergency lighting, patient wandering,
infant tagging, and nurse call.
"Maintenance agreement" means a contract of limited duration that provides for scheduled
maintenance only, and does not include repair or replacement of the property subject to the
contract.
"Motor vehicle ancillary protection product" means a contract or agreement between a
provider and a consumer for a specific duration, for a provider fee or other separately stated
consideration, to perform one or more of the following with respect to a motor vehicle:
(1) the repair or replacement of tires or wheels on a motor vehicle damaged as a result of
coming into contact with road hazards including but not limited to potholes, rocks, wood
debris, metal parts, glass, plastic, curbs, or composite scraps;
(2) 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
replacing vehicle body panels, sanding, bonding, or painting;
(3) the repair of small motor vehicle windshield chips or cracks which may include
replacement of the windshield for chips or cracks that cannot be repaired.
"Non-original manufacturer's part" means a replacement part not made for or by the
original manufacturer of the property, commonly referred to as an "after market part."
"Person" means any natural person, company, corporation, association, society, firm,
partnership, or other similar legal entity.
"Premium" means the consideration paid to an insurer for a reimbursement insurance
policy, and is subject to any applicable premium tax.
"Provider" means a person who is contractually obligated to the service contract holder
under the terms of the service contract.
"Provider fee" means the consideration paid by a consumer for a service contract, and is
not subject to any premium tax.
"Reimbursement insurance policy" means a policy of insurance issued to a provider to
either provide reimbursement to, or payment on behalf of, the provider under the terms of the
insured service contracts issued or sold by the provider, or, in the event of the provider's non-