(a)    In this subtitle the following words have the meanings indicated.

(b)    “Administrator” means a person that is designated by a warrantor to be responsible for the administration of a vehicle protection product warranty.

(c)    “Division” means the Division of Consumer Protection of the Office of the Attorney General.

(d)    (1)    “Incidental costs” means an expense that:

(i)    Is specified in a vehicle protection product warranty;

(ii)    Is incurred by the warranty holder; and

(iii)    Relates to the failure of a vehicle protection product to perform as provided in the vehicle protection product warranty.

(2)    “Incidental costs” include:

(i)    Insurance policy deductibles;

(ii)    Charges for rental vehicles;

(iii)    The difference between the value of a stolen vehicle at the time of theft and the cost of a replacement vehicle;

(iv)    Sales taxes;

(v)    Registration fees;

(vi)    Transaction fees; and

(vii)    Mechanical inspection fees.

(e)    (1)    “Vehicle protection product” means a vehicle protection device, system, or service that:

(i)    Is sold with a written warranty;

(ii)    Is installed on or applied to a vehicle; and

(iii)    Is designed to prevent loss or damage to a vehicle from a specific cause.

(2)    “Vehicle protection product” includes:

(i)    An alarm system;

(ii)    A body part marking product;

(iii)    A steering lock;

(iv)    A window etch product;

(v)    A pedal or ignition lock;

(vi)    A fuel or ignition kill switch; and

(vii)    An electronic, radio, or satellite tracking device.

(f)    “Vehicle protection product warranty” means a written agreement by a warrantor that provides that if a vehicle protection product fails to prevent loss or damage to a vehicle from a specific cause, the warrantor shall pay to, or on behalf of, the warranty holder specified incidental costs incurred as a result of the failure of the vehicle protection product to perform in accordance with the terms of the vehicle protection product warranty.

(g)    (1)    “Warrantor” means a person that is contractually obligated to the warranty holder under the terms of the vehicle protection product warranty.

(2)    “Warrantor” does not include an authorized insurer that issues a warranty reimbursement insurance policy.

(h)    “Warranty holder” means a person that purchases a vehicle protection product warranty or a permitted transferee.

(i)    “Warranty reimbursement insurance policy” means a policy of insurance that is issued to a warrantor to:

(1)    Provide reimbursement to the warrantor; or

(2)    Pay on behalf of the warrantor all covered contractual obligations incurred by the warrantor under the terms and conditions of the insured vehicle protection product warranties sold by the warrantor.