The following words and terms, as used in this chapter and Texas Occupations Code, Chapter 1304, have the following meanings:

1. (1) "Service contract seller" or "seller" means a person, other than the provider or the administrator of the service contract, who is responsible for marketing, offering, or selling service contracts, but is not contractually obligated to a service contract holder under the terms of a service contract.

2. (2) "Third-party administration of a service contract" includes any of the following activities performed on behalf of a service contract provider:

   1. (A) performing or arranging the collection, maintenance, or disbursement of money to compensate any party for claims or repairs pursuant to a service contract;
   2. (B) participating in the processing or adjustment of claims arising under a service contract;
   3. (C) maintaining records required by Texas Occupations Code, Chapter 1304; or
   4. (D) complying with provider requirements, other than financial security requirements, of Texas Occupations Code, Chapter 1304.
3. (3) The term "third party administration of a service contract" does not include the performance of repairs, or clerical functions ancillary to the performance of repairs, by a repair facility that performs no other activities with respect to a service contract.

Source Note:The provisions of this §77.10 adopted to be effective November 16, 2009, 34 TexReg 7791.