COL10312014
22 Guam Code Ann. BUSINESS REGULATIONS
CH. 12 ADMINISTRATION

(a) Administrator means a person appointed or designated by a provider who administers service contracts and service contract plans on behalf of the provider, and subject to the requirements of this Article.
(b) Commissioner means the Insurance and Banking Commissioner. (c) Consumer means an individual who buys any tangible personal
goods that is primarily for personal, family, or household use.

(d) Non-original manufacturer’s parts means replacement parts not made for or by the original manufacturer of the goods, commonly referred to as “”after-market parts.””

(e) Person means an individual, limited liability partnership, partnership, limited liability company, corporation, incorporated or unincorporated association, joint stock company, reciprocal, syndicate, or any similar entity or combination of entities acting in concert.

(f) Reimbursement insurance policy means a policy of insurance issued to a service contract provider by an authorized insurer. Pursuant to this insurance policy, the insurer agrees, for the benefit of the service contract holders, to discharge all of the obligations and liabilities of the service contract provider under the terms of the issued service contracts or in the event of non-performance by the insured service contract provider. A reimbursement insurance policy insurer shall not terminate the policy until it has issued a notice of termination required by the Commissioner under the insurance laws, rules, or regulations of the government of Guam. The termination of a reimbursement insurance policy shall not reduce the insurer’s responsibility for service contracts issued by service contract providers prior to the date or termination. A service contract provider shall be considered the agent of the reimbursement insurance policy insurer for purposes of determining duties owed by the insurer to service contract holders in accordance with the service contract, and this Article. Insurers are deemed to have received the premiums for the insurance upon the payment of provider fees by consumers for service contracts issued by the insured service contract provider. “”All obligations and liabilities”” include:

(1) the failure or inability of the insured service contract provider to perform under the terms and conditions of the provider’s issued service contracts; and

COL10312014
22 Guam Code Ann. BUSINESS REGULATIONS
CH. 12 ADMINISTRATION

(2) in the event of cancellation, the service contract provider’s failure or inability to return the unearned portion of the paid service contract fee to the service contract holder.

(g) Service contract, for the purposes of this Article, means a contract or agreement for a separately stated consideration for a specific duration to perform the repair, replacement or maintenance of goods or indemnification for repair, replacement or maintenance, for the operational or structural failure of any motor vehicle or other goods due to a defect in materials, workmanship, accidental damage from handling, or normal wear and tear, with or without additional provisions for incidental payment of indemnity under limited circumstances, including, but not limited to, towing, rental and emergency road service, and road hazard protection. Motor vehicle manufacturer and original equipment manufacturer (OEM)-backed contracts shall be exempt from the requirements in this Article. Service contracts may provide for repair, replacement, or maintenance of goods for damage resulting from power surges or interruption. Service contracts also include a contract or agreement sold for a separately stated consideration for a specific duration that provides for any of the following:

(1) the repair or replacement or indemnification for the repair or replacement of a motor vehicle for the operational or structural failure of one or more parts or systems of the motor vehicle brought about by the failure of an additive product to perform as represented;

(2) the repair or replacement of tires and/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;

(3) the removal of dents, dings, or creases on a motor vehicle that can be repaired using the process of paint-less dent removal without affecting the existing paint finish and without replacing vehicle body panels, sanding, bonding or painting;

(4) the repair of small motor vehicle windshield chips or cracks, but which expressly excludes the replacement of the entire windshield; or

(5) the repair of damage to the interior components of a motor vehicle caused by wear and tear, but which expressly excludes the replacement of any part or component of a motor vehicle’s interior.

COL10312014
22 Guam Code Ann. BUSINESS REGULATIONS
CH. 12 ADMINISTRATION

(h) Service Contract Provider means a person who is contractually obligated to the service contract holder under the terms of the service contract.

(i) Service Contract Holder or contract holder means a person who is the purchaser or holder of a service contract.

(j) Service Contract Seller means the person who sells the service contract to the consumer.

(k) Warranty means a warranty made without consideration, solely by the manufacturer, importer, or seller of goods or services, that is not negotiated or separated from the sale of the product and is incidental to the sale of the product, that provides repair or replacement for defective parts, mechanical or electrical breakdown, labor, or other remedial measures.