Section 12805 Of Part 8. Service Contracts From California Insurance Code >> Division 2. >> Part 8.
12805
. (a) Notwithstanding Sections 103 and 116, the following
types of agreements shall not constitute insurance:
(1) A vehicle service contract that does each of the following:
(A) Names as the obligor a motor vehicle manufacturer or
distributor licensed in that capacity by the Department of Motor
Vehicles, or a watercraft manufacturer.
(B) Covers only motor vehicles or watercraft manufactured,
distributed, or sold by that obligor.
(2) A vehicle service contract in which the obligor is a seller,
provided that the obligor complies with all provisions of this part
except Section 12815.
(3) A vehicle service contract sold by a seller in which the
obligor is a party other than the seller, provided that the obligor
complies with all provisions of this part.
(4) An agreement in which the obligor is a motor vehicle or
watercraft part manufacturer, distributor, or retailer, that covers
no more than the following items:
(A) The repair or replacement of a part manufactured, distributed,
or retailed by that obligor.
(B) Consequential and incidental damage resulting from the failure
of that part.
(5) An agreement in which the obligor is a repair facility, that
is entered into pursuant and subsequent to repair work previously
performed by that repair facility, and that is limited in scope to
the following:
(A) The repair or replacement of the part that was previously
repaired.
(B) Consequential and incidental damage resulting from the failure
of that part.
(6) An agreement promising only routine maintenance that does not
constitute a vehicle service contract.
(b) The types of agreements described in paragraphs (4), (5), and
(6) of subdivision (a) are exempt from all provisions of this part.
(c) Vehicle service contracts described in paragraph (1) of
subdivision (a) are exempt from the provisions of Sections 12815,
12830, 12835, and 12845.