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

1. (1) "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.
2. (2) 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 February 6, 2001, 26 TexReg 1138; amended to be effective February 1, 2006, 31 TexReg 490.