New Jersey § 56:12-87

§ 56:12-87.

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 P.L.2013, c. 197 ( C.56:12-91 ) , 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. “ Division ” means 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. “ Leased motor vehicle excess wear and use protection ” means the repair, replacement, or maintenance of property, or indemnification for

repair, replacement, or maintenance, due to excess wear and use, damage for items

such as tires, paint cracks or chips, interior stains, rips or scratches, exterior

dents or scratches, windshield cracks or chips, missing interior or exterior parts

or excess mileage that results in a lease-end charge, or any other charge for damage

that is deemed as excess wear and use by a lessor under a motor vehicle lease. “ 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; (4) 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; (5) leased motor vehicle excess wear and use protection; or (6) other services which may be approved by the director, that are consistent with

the provisions of P.L.2013, c. 197 ( C.56:12-87 et seq. ). “ 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. “ Public utility ” means a public utility as defined in subsection a. of R.S.48:2-13 . “ Reimbursement insurance policy ” means a policy of insurance issued to a regulated entity to either provide reimbursement to, or payment on behalf of, the regulated entity under the terms of the insured service contracts issued or sold by the regulated entity , or, in the event of the non-performance of a regulated entity , to provide or pay for, on behalf of the regulated entity , all covered contractual obligations incurred by the regulated entity . “ Regulated entity ” means a provider or an administrator. “ Service contract ” means a contract or agreement between a provider and a consumer for any duration,

for a provider fee or other separately stated consideration, to perform, or to provide

indemnification for the performance of, the maintenance, repair, replacement, or service

of property for the operational or structural failure of the property due to a defect

in materials or workmanship or due to normal wear and tear, and which may include

additional provisions for incidental payment of indemnity under limited circumstances. In the case of a motor vehicle, such circumstances may include towing, rental, and

emergency road services, and other road hazard protections. A service contract may provide for the maintenance, repair, replacement, or service

of the property for damage resulting from power surges or interruption, or accidental

damage from handling. A service contract also includes a motor vehicle ancillary protection product. Service contracts may provide for leak or repair coverage to house roofing systems. A “service contract” does not include a contract in writing to maintain structural

wiring associated with the delivery of cable, telephone, or other broadband communication

services or a contract in writing related to the delivery of satellite television

or broadband communication services. “ Service contract holder ” or “ contract holder ” means a consumer who is the purchaser of a service contract or is entitled to the

contractual benefits under the terms of the contract. “ Warranty ” means a warranty made solely by the manufacturer, importer, or seller of property

or services without additional consideration, that is incidental to, and not negotiated

or separated from, the sale of the property or services, that guarantees indemnity

for defective materials, parts, mechanical or electrical breakdown, labor, or workmanship,

or provides other remedial measures, including repair or replacement of the property

or repetition of services.