Definitions for KRS 367.701 to 367.709. (Effective January 1, 2027)

As used in KRS 367.701 to 367.709: (1) "Borrower" means a debtor, or retail purchaser or lessee, under a finance agreement; (2) "Commercial" means a transaction under which a vehicle will be used primarily for business purposes; (3) "Consumer": (a) Means: 1. An individual purchaser or lessee of a vehicle; or 2. A borrower; and (b) Includes a contract holder; (4) "Contract holder" means a person who is the purchaser or holder of a vehicle value protection agreement; (5) "Creditor" means any of the following: (a) The lender in a loan transaction; (b) The lessor in a lease transaction; (c) Any retail seller of vehicles; and (d) The assignee of any person referenced in paragraph (a), (b), or (c) of this subsection to whom a credit obligation is payable; (6) "Debt waiver" means any: (a) Guaranteed asset protection waiver; and (b) Excess wear and use waiver; (7) "Excess wear and use waiver" means a contractual agreement, as part of or as a separate addendum to a lease agreement, in which a creditor agrees, with or without a separate charge, to cancel or waive all or parts of amounts that may become due under a borrower's lease agreement as a result of excessive wear and use of a vehicle, including an agreement to cancel or waive amounts due for excessive mileage; (8) "Finance agreement" means any of the following: (a) A loan, retail installment sales contract, or lease for the purchase, refinancing, or lease of a vehicle; and (b) A loan with a term of at least twelve (12) months that is secured by a vehicle; (9) "Free look period" means a period of time from the effective date of a vehicle financial protection product until the date the vehicle financial protection product may be canceled without penalty, fees, or costs; (10) "Guaranteed asset protection waiver": (a) Means a contractual agreement wherein a creditor agrees, with or without a separate charge, to cancel or waive all or part of amounts due under a borrower's finance agreement in the event of a total physical damage loss or unrecovered theft of the vehicle; and (b) May provide, with or without a separate charge, a benefit that waives an  amount, or provides a borrower with a credit, toward the purchase of a replacement vehicle; (11) "Insurer" means: (a) An insurance company licensed, registered, or otherwise authorized under the laws of this state to transact insurance business; or (b) A nonadmitted insurer in accordance with the requirements of Subtitle 10 of KRS Chapter 304; (12) "Person" includes an individual, company, association, organization, partnership, business trust, corporation, and every form of legal entity; (13) "Vehicle": (a) Means a self-propelled or towed vehicle designed for personal or commercial use; and (b) Includes automobiles, trucks, motorcycles, recreational vehicles, all-terrain vehicles, snowmobiles, campers, boats, personal watercraft, and related trailers; (14) "Vehicle financial protection product" means any: (a) Debt waiver; and (b) Vehicle value protection agreement; and (15) "Vehicle value protection agreement": (a) Means a contractual agreement that, upon the occurrence of an adverse event to a contract holder's vehicle, including loss, theft, damage, obsolescence, diminished value, or depreciation, provides a benefit towards either: 1. The reduction of some or all of the contract holder's current finance agreement deficiency balance; or 2. The purchase or lease of a replacement vehicle or vehicle services; (b) Includes trade-in credit agreements, diminished value agreements, depreciation benefit agreements, vehicle cash down payment agreements, and other similarly named agreements; and (c) Does not include: 1. A debt waiver; 2. A service contract as defined in KRS 304.5-070; or 3. Insurance or an insurance contract regulated under KRS Chapter 304.