Mergers of Service Contract Providers
If two registered service contract providers plan to merge, what agreements have to be submitted to the New York State Superintendent of Insurance?
What type of notice should be sent to the service contract holders of the non-surviving provider, if the claims process, telephone numbers, and addresses for contacting the service contract provider remain unchanged?
Is the service contract reimbursement insurer of the non-surviving service contract provider required to confirm that the service contract reimbursement coverage currently in effect will remain in effect until the expiration of all obligations under the provider’s issued service contracts?
Service Contract Providers and Risk Retention Groups
Can a risk retention group underwrite the obligations of a service contract provider?
Can a service contract provider like Alpha seek to "reinsure" 100% of the service contract risk?
Are the persons marketing service contracts that are backed up by insurance policies required to have an insurance license?
Licensing/Registration Requirements for Service Contract Providers
Must a person who is obligated under an agreement to perform repair, replacement or maintenance of property, or indemnification for repair, replacement or maintenance, due to a defect in materials or workmanship or wear and tear, and who is not the manufacturer or seller of the property or product to be serviced, obtain a license or certification from the Department?
Must a service contract provider file rates and forms for service contracts with the Department?
Must a person be licensed or certified by or registered with the Department to adjust claims and perform other customer services on behalf of service contract providers?
Must a service contract provider purchase service contract reimbursement insurance coverage to insure its obligations arising from the service contracts it sells?
After a service contract provider satisfies all of its obligations under a service contract, may such provider receive from the service contract reimbursement insurer a return of some of the premiums paid?
Warranties and Maintenance Agreements
Warranties covering defects in materials or workmanship made by manufacturers, sellers, or distributors of the product that is covered are very similar to service contracts but generally do not constitute either service contracts or insurance contracts.
For a fuller discussion as to the differences between warranties and service contracts, select this link.