385.415. Warranty reimbursement insurance policy requirements.
Warranty reimbursement insurance policy requirements.
385.415. No warranty reimbursement insurance policy shall be issued,sold, or offered for sale in this state unless the policy meets thefollowing conditions:
(1) The policy states that the issuer of the policy will reimburse orpay on behalf of the vehicle protection product warrantor all covered sumswhich the warrantor is legally obligated to pay or will provide that allservice that the warrantor is legally obligated to perform according to thewarrantor's contractual obligations under the provisions of the insuredwarranties sold by the warrantor;
(2) The policy states that in the event payment due under the termsof the warranty is not provided by the warrantor within sixty days afterproof of loss has been filed according to the terms of the warranty by thewarranty holder, the warranty holder may file directly with the warrantyreimbursement insurance company for reimbursement;
(3) The policy provides that a warranty reimbursement insurancecompany that insures a warranty shall be deemed to have received payment ofthe premium if the warranty holder paid for the vehicle protection productand insurer's liability under the policy shall not be reduced or relievedby a failure of the warrantor, for any reason, to report the issuance of awarranty to the insurer; and
(4) The policy has the following provisions regarding cancellation ofthe policy:
(a) The issuer of a reimbursement insurance policy shall not cancelsuch policy until a notice of cancellation in writing has been mailed ordelivered to the director and each insured warrantor sixty days prior tocancellation of the policy;
(b) The cancellation of a reimbursement insurance policy shall notreduce the issuer's responsibility for vehicle protection products soldprior to the date of cancellation; and
(c) In the event an insurer cancels a policy that a warrantor hasfiled with the director, the warrantor shall do either of the following:
a. File a copy of a new policy with the director, before thetermination of the prior policy; or
b. Discontinue offering warranties as of the termination date of thepolicy until a new policy becomes effective and is accepted by thedirector.
(L. 2008 S.B. 930 & 947)Effective 1-01-09