1. (a) As used in this chapter, "incidental cost" means an expense that is:

   1. (1) specified in a service contract that applies to a motor vehicle;
   2. (2) incurred by the holder due to the failure of an ancillary protection product to perform as provided in the service contract sold with the ancillary protection product; and

   3. (3) reimbursed to the holder:

      1. (A) as a fixed amount specified in the service contract; or
      2. (B) by use of a formula that itemizes specific incurred expenses.

2. (b) "Incidental cost" includes the following:

   1. (1) Insurance policy deductibles.
   2. (2) Rental vehicle charges.
   3. (3) The difference between the actual value of a stolen motor vehicle at the time of theft and the cost of a replacement motor vehicle.
   4. (4) Sales tax.
   5. (5) Registration fees.
   6. (6) Transaction fees.
   7. (7) Mechanical inspection fees.
   8. (8) Expense incurred due to a defective part or mechanical or electrical breakdown.
   9. (9) Expense incurred for labor.
   10. (10) Expense incurred for other remedial measures, including a repair, a replacement, or repetition of a service.

As added by P.L.129-2014, SEC.10.