(a) The purposes of this part are to:

1. (1) Create a legal framework within which service contracts are defined, may be sold, and are regulated in this state;
2. (2) Add significant consumer protections; and
3. (3) Eliminate unnecessary administration.

(b)

1. (1) A service contract, as defined in the Service Contracts Act, Arkansas Code § 4-114-101 et seq., and this part, is not insurance and is not subject to the Arkansas Insurance Code.
2. (2) The Service Contracts Act and this part do not apply to the agreements and transactions set forth in Arkansas Code § 4-114-102(c).