New York Codes, Rules and Regulations
Title 11 - INSURANCE
Chapter XVI - Service Contracts
Part 390 - Service Contracts
Section 390.7 - Service contract reimbursement insurance: minimum provisions and requirements
Universal Citation: 11 NY Comp Codes Rules and Regs ยง 390.7
Current through Register Vol. 46, No. 39, September 25, 2024
(a)
(1) No insurer may issue or deliver in this
State a policy of service contract reimbursement insurance on and after January
15, 1998, unless the insurer is licensed pursuant to section
1113
(a)(28) of the Insurance Law and the policy
meets the definition contained therein.
(2) Service contract reimbursement insurance
shall not provide coverage to a warrantor for its warranties.
(b) No policy of service contract reimbursement insurance may be issued or delivered in this State unless the policy, in substance, provides:
(1) for
direct coverage to the covered contract holders if the provider fails to pay or
provide service on a claim within 60 days after proof of loss has been filed
with the provider;
(2) that the
termination of the policy shall not affect or reduce the insurer's obligations
to, or responsibility for, direct coverage to contract holders whose service
contracts were made during the term of the policy and were covered under the
policy;
(3) that the revocation, or
other termination of the provider's registration, for any reason, shall be
construed to be a default by the provider and that the insurer will provide for
direct coverage to the covered contract holders without having to wait 60 days;
and
(4) that the suspension of the
provider's registration for more than 60 days shall be construed to be a
default by the provider and that the insurer will provide for direct coverage
to the covered contract holders without having to wait 60 days, until such time
as the provider is permitted to resume business.
(c) No policy of service contract reimbursement insurance shall permit the insurer to rescind the policy and no insurer shall rescind such a policy.
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