New Jersey Statutes 56:12-88. Provisions for issuance of service contracts; exemptions
Terms Used In New Jersey Statutes 56:12-88
- Contract: A legal written agreement that becomes binding when signed.
- person: includes corporations, companies, associations, societies, firms, partnerships and joint stock companies as well as individuals, unless restricted by the context to an individual as distinguished from a corporate entity or specifically restricted to one or some of the above enumerated synonyms and, when used to designate the owner of property which may be the subject of an offense, includes this State, the United States, any other State of the United States as defined infra and any foreign country or government lawfully owning or possessing property within this State. See New Jersey Statutes 1:1-2
- State: extends to and includes any State, territory or possession of the United States, the District of Columbia and the Canal Zone. See New Jersey Statutes 1:1-2
b. The following shall be exempt from the provisions of this act:
(1) warranties;
(2) maintenance agreements;
(3) service contracts on property if the property for which the service contract is sold has a purchase price of $250 or less, excluding sales tax;
(4) mechanical breakdown insurance policies offered by licensed insurers pursuant to the insurance laws of this State;
(5) motor club or association membership contracts that primarily provide for roadside assistance and towing services in situations that involve impairment of the operation of a member’s motor vehicle, for reasons that include, but are not limited to, mechanical breakdown or adverse road conditions;
(6) newspapers that accept or publish advertising for items that fall within the scope of this act;
(7) service contracts on emergency, life safety, or property safety goods; and
(8) service contracts issued, offered, or sold:
(a) by a public utility to the extent that the public utility is regulated by the Board of Public Utilities, or by a person providing central heating and air conditioning services, but only with respect to a service contract regarding the product sold to a consumer or installed or repaired for the consumer at the consumer’s household by a utility , a subsidiary of a utility, or a person providing central heating and air conditioning services; or
(b) to any person other than a consumer.
c. Service contracts are not insurance in this State or otherwise regulated under Title 17 of the Revised Statutes. The making, proposing to make, issuing, marketing, offering, selling, administering of, or providing contractual obligations for, a service contract shall not be construed to be the business of insurance and shall be exempt from regulation as insurance pursuant to Title 17 of the Revised Statutes, however nothing in this act shall be construed to exempt the making, issuing, marketing, offering, or selling of a reimbursement insurance policy from any applicable provisions of Title 17 of the Revised Statutes.
L.2013, c.197, s.2.