§ 66‑370. Motor vehicleservice agreement companies.
(a) This sectionapplies to all motor vehicle service agreement companies soliciting business inthis State, but it does not apply to performance guarantees, warranties, ormotor vehicle service agreements made by
(1) A manufacturer,
(2) A distributor, or
(3) A subsidiary oraffiliate of a manufacturer or a distributor, where fifty‑one percent(51%) or more of the subsidiary or affiliate is owned directly or indirectly by
a. The manufacturer,
b. The distributor, or
c. The common owner offifty‑one percent (51%) or more of the manufacturer or distributor
inconnection with the sale of motor vehicles. This section does not apply to anymotor vehicle dealer licensed to do business in this State (i) whose primarybusiness is the retail sale and service of motor vehicles; (ii) who makes andadministers its own service agreements with or without association with a third‑partyadministrator or who makes its own service agreements in association with amanufacturer, distributor, or their subsidiaries or affiliates; and (iii) whoseservice agreements cover only vehicles sold by the dealer to its retailcustomer; provided that the dealer complies with G.S. 66‑372 and G.S. 66‑373.A motor vehicle dealer who sells a motor vehicle service agreement to aconsumer, as defined in 15 U.S.C. § 2301(3), is not deemed to have made awritten warranty to the consumer with respect to the motor vehicle sold or tohave entered into a service contract with the consumer that applies to themotor vehicle, as provided in 15 U.S.C. § 2308(a), if: (i) the motor vehicledealer acts as a mere agent of a third party in selling the motor vehicleservice agreement; and (ii) the motor vehicle dealer would, after the sale ofthe motor vehicle service agreement, have no further obligation under the motorvehicle service agreement to the consumer to service or repair the vehicle soldto the consumer at or within 90 days before the dealer sold the motor vehicleservice agreement to the consumer.
(b) The followingdefinitions apply in this section and in G.S. 66‑371, 66‑372, and66‑373:
(1) Authorized insurer. An insurance company authorized to write liability insurance under Articles7, 16, 21, or 22 of Chapter 58 of the General Statutes.
(2) Distributor. Definedin G.S. 20‑286(3).
(3) Licensed insurer. Aninsurance company licensed to write liability insurance under Article 7 or 16of Chapter 58 of the General Statutes.
(4) Motor vehicle. Definedin G.S. 20‑4.01(23), but also including mopeds as defined in G.S. 20‑4.01(27)d1.
(5) Motor vehicleservice agreement. Any contract or agreement indemnifying the motor vehicleservice agreement holder against loss caused by failure, arising out of theownership, operation, or use of a motor vehicle, of a mechanical or othercomponent part of the motor vehicle that is listed in the agreement. The termdoes not mean a contract or agreement guaranteeing the performance of parts orlubricants manufactured by the guarantor and sold for use in connection with amotor vehicle where no additional consideration is paid or given to theguarantor for the contract or agreement beyond the price of the parts orlubricants.
(6) Motor vehicleservice agreement company. Any person that issues motor vehicle serviceagreements and that is not a licensed insurer.
(c) through (g) Repealed bySession Laws 1993 (Reg. Sess., 1994), c. 730, s. 3. (1991 (Reg. Sess., 1992), c.1014, s. 1; 1993, c. 504, ss. 47, 48, 52; c. 539, s. 442; 1994, Ex. Sess., c.24, s. 14(c); 1993 (Reg. Sess., 1994), c. 730, ss. 3, 4; 1995, c. 193, s. 3;2007‑95, ss. 2, 9.)
§ 66‑370. Motor vehicleservice agreement companies.
(a) This sectionapplies to all motor vehicle service agreement companies soliciting business inthis State, but it does not apply to performance guarantees, warranties, ormotor vehicle service agreements made by
(1) A manufacturer,
(2) A distributor, or
(3) A subsidiary oraffiliate of a manufacturer or a distributor, where fifty‑one percent(51%) or more of the subsidiary or affiliate is owned directly or indirectly by
a. The manufacturer,
b. The distributor, or
c. The common owner offifty‑one percent (51%) or more of the manufacturer or distributor
inconnection with the sale of motor vehicles. This section does not apply to anymotor vehicle dealer licensed to do business in this State (i) whose primarybusiness is the retail sale and service of motor vehicles; (ii) who makes andadministers its own service agreements with or without association with a third‑partyadministrator or who makes its own service agreements in association with amanufacturer, distributor, or their subsidiaries or affiliates; and (iii) whoseservice agreements cover only vehicles sold by the dealer to its retailcustomer; provided that the dealer complies with G.S. 66‑372 and G.S. 66‑373.A motor vehicle dealer who sells a motor vehicle service agreement to aconsumer, as defined in 15 U.S.C. § 2301(3), is not deemed to have made awritten warranty to the consumer with respect to the motor vehicle sold or tohave entered into a service contract with the consumer that applies to themotor vehicle, as provided in 15 U.S.C. § 2308(a), if: (i) the motor vehicledealer acts as a mere agent of a third party in selling the motor vehicleservice agreement; and (ii) the motor vehicle dealer would, after the sale ofthe motor vehicle service agreement, have no further obligation under the motorvehicle service agreement to the consumer to service or repair the vehicle soldto the consumer at or within 90 days before the dealer sold the motor vehicleservice agreement to the consumer.
(b) The followingdefinitions apply in this section and in G.S. 66‑371, 66‑372, and66‑373:
(1) Authorized insurer. An insurance company authorized to write liability insurance under Articles7, 16, 21, or 22 of Chapter 58 of the General Statutes.
(2) Distributor. Definedin G.S. 20‑286(3).
(3) Licensed insurer. Aninsurance company licensed to write liability insurance under Article 7 or 16of Chapter 58 of the General Statutes.
(4) Motor vehicle. Definedin G.S. 20‑4.01(23), but also including mopeds as defined in G.S. 20‑4.01(27)d1.
(5) Motor vehicleservice agreement. Any contract or agreement indemnifying the motor vehicleservice agreement holder against loss caused by failure, arising out of theownership, operation, or use of a motor vehicle, of a mechanical or othercomponent part of the motor vehicle that is listed in the agreement. The termdoes not mean a contract or agreement guaranteeing the performance of parts orlubricants manufactured by the guarantor and sold for use in connection with amotor vehicle where no additional consideration is paid or given to theguarantor for the contract or agreement beyond the price of the parts orlubricants.
(6) Motor vehicleservice agreement company. Any person that issues motor vehicle serviceagreements and that is not a licensed insurer.
(c) through (g) Repealed bySession Laws 1993 (Reg. Sess., 1994), c. 730, s. 3. (1991 (Reg. Sess., 1992), c.1014, s. 1; 1993, c. 504, ss. 47, 48, 52; c. 539, s. 442; 1994, Ex. Sess., c.24, s. 14(c); 1993 (Reg. Sess., 1994), c. 730, ss. 3, 4; 1995, c. 193, s. 3;2007‑95, ss. 2, 9.)
§ 66‑370. Motor vehicleservice agreement companies.
(a) This sectionapplies to all motor vehicle service agreement companies soliciting business inthis State, but it does not apply to performance guarantees, warranties, ormotor vehicle service agreements made by
(1) A manufacturer,
(2) A distributor, or
(3) A subsidiary oraffiliate of a manufacturer or a distributor, where fifty‑one percent(51%) or more of the subsidiary or affiliate is owned directly or indirectly by
a. The manufacturer,
b. The distributor, or
c. The common owner offifty‑one percent (51%) or more of the manufacturer or distributor
inconnection with the sale of motor vehicles. This section does not apply to anymotor vehicle dealer licensed to do business in this State (i) whose primarybusiness is the retail sale and service of motor vehicles; (ii) who makes andadministers its own service agreements with or without association with a third‑partyadministrator or who makes its own service agreements in association with amanufacturer, distributor, or their subsidiaries or affiliates; and (iii) whoseservice agreements cover only vehicles sold by the dealer to its retailcustomer; provided that the dealer complies with G.S. 66‑372 and G.S. 66‑373.A motor vehicle dealer who sells a motor vehicle service agreement to aconsumer, as defined in 15 U.S.C. § 2301(3), is not deemed to have made awritten warranty to the consumer with respect to the motor vehicle sold or tohave entered into a service contract with the consumer that applies to themotor vehicle, as provided in 15 U.S.C. § 2308(a), if: (i) the motor vehicledealer acts as a mere agent of a third party in selling the motor vehicleservice agreement; and (ii) the motor vehicle dealer would, after the sale ofthe motor vehicle service agreement, have no further obligation under the motorvehicle service agreement to the consumer to service or repair the vehicle soldto the consumer at or within 90 days before the dealer sold the motor vehicleservice agreement to the consumer.
(b) The followingdefinitions apply in this section and in G.S. 66‑371, 66‑372, and66‑373:
(1) Authorized insurer. An insurance company authorized to write liability insurance under Articles7, 16, 21, or 22 of Chapter 58 of the General Statutes.
(2) Distributor. Definedin G.S. 20‑286(3).
(3) Licensed insurer. Aninsurance company licensed to write liability insurance under Article 7 or 16of Chapter 58 of the General Statutes.
(4) Motor vehicle. Definedin G.S. 20‑4.01(23), but also including mopeds as defined in G.S. 20‑4.01(27)d1.
(5) Motor vehicleservice agreement. Any contract or agreement indemnifying the motor vehicleservice agreement holder against loss caused by failure, arising out of theownership, operation, or use of a motor vehicle, of a mechanical or othercomponent part of the motor vehicle that is listed in the agreement. The termdoes not mean a contract or agreement guaranteeing the performance of parts orlubricants manufactured by the guarantor and sold for use in connection with amotor vehicle where no additional consideration is paid or given to theguarantor for the contract or agreement beyond the price of the parts orlubricants.
(6) Motor vehicleservice agreement company. Any person that issues motor vehicle serviceagreements and that is not a licensed insurer.
(c) through (g) Repealed bySession Laws 1993 (Reg. Sess., 1994), c. 730, s. 3. (1991 (Reg. Sess., 1992), c.1014, s. 1; 1993, c. 504, ss. 47, 48, 52; c. 539, s. 442; 1994, Ex. Sess., c.24, s. 14(c); 1993 (Reg. Sess., 1994), c. 730, ss. 3, 4; 1995, c. 193, s. 3;2007‑95, ss. 2, 9.)
