Section 0780-01-80-.04 - DEFINITIONS(1) "Act" means the Tennessee Vehicle Protection Product Act, T.C.A. §§ 56-55-101, et seq.;(2) "Administrator" means a third party, other than the warrantor, who is designated by the warrantor to be responsible for the administration of vehicle protection product warranties;(3) "Commissioner" means the commissioner of the Tennessee Department of Commerce and Insurance;(4) "Department" means the Tennessee Department of Commerce and Insurance;(5) "Incidental costs" means expenses resulting from loss or damage to a vehicle, as specified in the warranty, incurred by the warranty holder, related to the failure of the vehicle protection product to perform as provided in the warranty. "Incidental costs" may include, but not be limited to, insurance policy deductibles, rental vehicle charges, the difference between the actual value of the stolen vehicle at the time of theft and the cost of a replacement vehicle, sales taxes, registration fees, transaction fees, and mechanical inspection fees. "Incidental costs" do not include the costs specified in the warranty to repair, replace or provide a refund for a vehicle protection product that fails to perform as provided in the warranty. "Incidental costs" may be determined by a formula or by a fixed amount, either of which must be set forth in the warranty;(6) "Person" means any natural or artificial person including, but not limited to, an individual, partnership, association, trust or corporation;(7)(a) "Vehicle protection product" means a vehicle protection device, system, or service that:(i) Is installed on or applied to a vehicle;(ii) Is designed to prevent loss or damage to a vehicle from a specific cause; and(iii) Includes a written warranty;(b) "Vehicle protection product" includes, but is not limited to, alarm systems, body part marking products, steering locks, window etch products, pedal and ignition locks, fuel and ignition kill switches, and electronic, radio, and satellite tracking devices;(8) "Vehicle protection product warranty" or "warranty" means a written agreement by a warrantor that provides that, if the vehicle protection product fails to prevent loss or damage to a vehicle from a specific cause, then the warranty holder shall be paid specified incidental costs by the warrantor as a result of the failure of the vehicle protection product to perform pursuant to the terms of the warranty;(9) "Vehicle protection product warrantor" or "warrantor" means a person who is contractually obligated to the warranty holder under the terms of the vehicle protection product warranty agreement. "Warrantor" does not include an authorized insurer;(10) "Warranty holder" means the person who purchases a vehicle protection product or who is a permitted transferee; and(11) "Warranty reimbursement insurance policy" means a policy of insurance that is issued to the vehicle protection product warrantor to provide reimbursement to the warrantor, or to 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.Tenn. Comp. R. & Regs. 0780-01-80-.04
Original rule filed April 22, 2008, to be effective July 6, 2008; however, the House Government Operations Committee stayed the rule; new effective date August 16, 2008.Authority: T.C.A. §§ 56-55-102 and 56-55-113.