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4-114-102. Scope and purpose.
Arkansas Code — all titles (historical 2020) · legal_authorities
4-114-102. Scope and purpose.
(a) The purpose of this chapter is to:
(1) Create a legal framework within which service contracts are defined, may be sold, and are regulated in this state;
(2) Add significant consumer protections; and
(3) Eliminate unnecessary administration.
(b) A service contract under § 4-114-103 is not insurance and is not subject to the Arkansas Insurance Code.
(c) This chapter does not apply to:
(1) Warranties;
(2) Maintenance agreements;
(3) Commercial transactions;
(4) A person or entity or the affiliate of a person or entity licensed or certificated by the Arkansas Public Service Commission or the Federal Communications Commission with respect to warranties, service contracts, or maintenance agreements covering wiring, transmission devices, equipment, or services offered or provided by the person, entity, or affiliate to its customers;
(5) Service contracts sold or offered for sale to persons other than consumers;
(6) Motor vehicle service contracts as defined in and regulated pursuant to the Motor Vehicle Service Contract Act, § 4-90-501 et seq.; or
(7) Mechanical breakdown insurance.
(d) Manufacturer's service contracts on the manufacturer's products are subject only to §§ 4-114-106(a), 4-114-106(d)-(g), 4-114-107, and 4-114-111.
(e) Other than mechanical breakdown insurance, the types of agreements referred to in subsections (c) and (d) of this section and service contracts governed under this chapter are not insurance and are not subject to compliance with any provision of the insurance laws of this state.
Source: Arkansas Code — historical release 78 (November 6, 2020) · 4-114-102
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. A text match is a research starting point; applicability is not established.
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Stable record: arkansas_code:legal_authorities:4-114-102
Source file: gov.ar.code.title.04.odt
Pages: Not recorded – Not recorded
Passage SHA-256: 64c43aa3819b8048fcd022db38d3725770150d1d045a6dd206535fedb667fed5
Source location: content.xml paragraph 38622
Stored source content
4-114-102. Scope and purpose.
(a) The purpose of this chapter is to:
(1) Create a legal framework within which service contracts are defined, may be sold, and are regulated in this state;
(2) Add significant consumer protections; and
(3) Eliminate unnecessary administration.
(b) A service contract under § 4-114-103 is not insurance and is not subject to the Arkansas Insurance Code.
(c) This chapter does not apply to:
(1) Warranties;
(2) Maintenance agreements;
(3) Commercial transactions;
(4) A person or entity or the affiliate of a person or entity licensed or certificated by the Arkansas Public Service Commission or the Federal Communications Commission with respect to warranties, service contracts, or maintenance agreements covering wiring, transmission devices, equipment, or services offered or provided by the person, entity, or affiliate to its customers;
(5) Service contracts sold or offered for sale to persons other than consumers;
(6) Motor vehicle service contracts as defined in and regulated pursuant to the Motor Vehicle Service Contract Act, § 4-90-501 et seq.; or
(7) Mechanical breakdown insurance.
(d) Manufacturer's service contracts on the manufacturer's products are subject only to §§ 4-114-106(a), 4-114-106(d)-(g), 4-114-107, and 4-114-111.
(e) Other than mechanical breakdown insurance, the types of agreements referred to in subsections (c) and (d) of this section and service contracts governed under this chapter are not insurance and are not subject to compliance with any provision of the insurance laws of this state.
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Arkansas Code — all titles (historical 2020) · legal_authorities
4-114-103. Definitions.
As used in this chapter:
(1) “Administrator” means the person who is responsible for the administration of a service contract;
(2) “Consumer” means an individual who buys other than for purposes of resale any tangible personal property that is distributed in commerce and that is normally used for personal, family, or household purposes and not for business or resale purposes;
(3) “Maintenance agreement” means a contract of limited duration that provides for scheduled maintenance only;
(4) “Manufacturer” means a person that:
(A) Manufactures or produces property and sells the property under its own name or label;
(B) Is a wholly owned subsidiary of the person that manufactures or produces that property;
(C) Is a corporation that owns one hundred percent (100%) of the person that manufactures or produces the property;
(D) Does not manufacture or produce the property, but the property is sold under its trade name label;
(E) Manufactures or produces the property, and the property is sold under the trade name or label of another person; or
(F) Does not manufacture or produce the property but licenses the use of its trade name or label under a written contract with another person that sells the property under the licensor's trade name or label;
(5) “Mechanical breakdown insurance” means a policy, a contract, or an agreement issued by an authorized insurer that provides for the repair, replacement, or maintenance of property or indemnification for repair, replacement, or service for the operations or structural failure of the property due to a defect in materials or workmanship or to normal wear and tear;
(6) “Nonoriginal manufacturer's parts” means replacement parts not made for or by the original manufacturer of the property,
Source: Arkansas Code — historical release 78 (November 6, 2020) · 4-114-103
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. The source passage cites 4-114-103. This identifies an authority to review, not proof of applicability.
Arkansas Code — all titles (historical 2020) · legal_authorities
4-114-106. Required disclosure — Service contracts.
(a) A service contract issued, sold, or offered for sale in this state shall:
(1) Be written in clear, understandable language that is easy to read; and
(2) Conspicuously disclose the applicable requirements of this section.
(b)(1) A service contract insured under a reimbursement insurance policy under § 4-114-104(d)(1) shall contain the name and address of the insurer and a statement in substantially the following form: “Obligations of the provider under this service contract are guaranteed under a service contract reimbursement insurance policy. If the provider fails to pay or provide service on a claim within sixty (60) days after proof of loss has been filed, the service contract holder is entitled to make a claim directly against the insurance company.”
(2) A claim against the provider may include a claim for return of the unearned provider fee.
(c)(1) A service contract not insured under a reimbursement insurance policy under § 4-114-104(d)(1) shall conspicuously state the name and address of the provider and contain a statement in substantially the following form: “Obligations of the provider under this service contract are backed only by the full faith and credit of the provider (issuer) and are not guaranteed under a service contract reimbursement insurance policy.”
(2) A claim against the provider shall also include a claim for return of the unearned provider fee.
(d) A service contract shall identify the administrator, the provider obligated to perform the service under the contract, the service contract seller, and the service contract holder to the extent that the name and address of the service contract holder have been furnished by the service contract holder.
(e)(1) A service contract
Source: Arkansas Code — historical release 78 (November 6, 2020) · 4-114-106
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. The source passage cites 4-114-106. This identifies an authority to review, not proof of applicability.
Arkansas Code — all titles (historical 2020) · legal_authorities
4-114-107. Prohibited acts.
(a)(1) A provider shall not use a name:
(A) With the words “insurance”, “casualty”, “surety”, “mutual”, or any other words descriptive of the insurance, casualty, or surety business; or
(B) Deceptively similar to the name or description of any insurance or surety corporation or any other provider.
(2)(A) This subsection shall not apply to a company that was using any of the prohibited language in its name prior to October 1, 2007.
(B) However, a company using the prohibited language in its name shall conspicuously disclose in its service contracts that the service contract is not an insurance contract.
(b) A provider or its representative shall not in its service contracts or literature make or permit or cause to be made any false or misleading statement or deliberately omit any material statement that would be considered misleading if omitted in connection with the sale, offer to sell, or advertisement of a service contract.
(c) A person, including without limitation a bank, savings and loan association, lending institution, manufacturer, or seller of any product shall not require the purchase of a service contract as a condition of a loan or a condition for the sale of any property.
Source: Arkansas Code — historical release 78 (November 6, 2020) · 4-114-107
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. The source passage cites 4-114-107. This identifies an authority to review, not proof of applicability.
Arkansas Code — all titles (historical 2020) · legal_authorities
4-90-501. Title.
This subchapter is known and may be cited as the “Motor Vehicle Service Contract Act”.
Source: Arkansas Code — historical release 78 (November 6, 2020) · 4-90-501
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. The source passage cites 4-90-501. This identifies an authority to review, not proof of applicability.