Maryland § 14-4A-01

§ 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.

    (d)    (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.

    (e)    (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.

    (g)    (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.