Evidence of Reimbursement Insurance Policy
A service contract provider that elects to meet the requirements of section 7903(c)(1) of the Insurance Law as the means to assure the faithful performance of its obligations under service contracts outstanding in this state shall provide the superintendent with evidence that appropriate coverage is in effect, in the form of a certificate from an insurer authorized to write service contract reimbursement insurance in New York.
The certificate shall be provided at the time of initial application for registration as a service provider, at the time of renewal, and at the time of any changes to the policy of the items specified in this section, other than the dates of the policy.
The certificate shall specify:
- The name of the insurer;
- The name of the insured;
- Which service contracts are covered by the policy;
- The effective dates of the policy;
- The applicable policy limits, if any;
- The applicable deductibles, if any;
- That the insurance policy provides 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;
- That the termination of the insurance 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;
- That the insurance policy provides 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;
- That the insurance policy provides 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; and
- That the coverage provided under the policy conforms with all of the requirements of article 79 of the Insurance Law and this Part.