(a) Except as provided in this subchapter, motor vehicle service contract providers shall be governed by the provisions of this subchapter and shall be exempt from all other provisions of the Arkansas Insurance Code.
(b) Nothing in this subchapter shall, however, prohibit or affect the giving, free of charge, of the usual warranties or performance guarantees by manufacturers, distributors, or dealers in connection with the sale of new motor vehicles; further, the requirements of this subchapter shall not apply to motor vehicle service contracts issued by a motor vehicle manufacturer, distributor, importer, or dealer of motor vehicles, nor shall the requirements of this subchapter apply to any nonrenewable motor vehicle service contract issued for a period of less than six (6) months, provided that the issuer of such motor vehicle service contract is the entity which sold the motor vehicle to which the service contract applies or is an affiliate of such entity.
(c) For purposes of this subchapter, an "affiliate" is an entity whose ownership is held fifty-one percent (51%) or more by the same entity which holds fifty-one percent (51%) or more ownership of the seller of the motor vehicle.
Section: Previous 4-90-502 4-90-503 4-90-504 4-90-505 4-90-506 4-90-507 4-90-508 4-90-509 4-90-510 4-90-511 4-90-512 NextLast modified: November 15, 2016