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The Office of General Counsel issued the following opinion on April 1, 2008, representing the position of the New York State Insurance Department.

RE: Office of General Counsel Opinion Number 06-08-13 (08/17/2006)

The inquirer asks whether the Department's Office of General Counsel Opinion Number 06-08-13 (08/17/2006), with the subject “Service contract road hazard coverage”, remains in effect. The conclusion of the opinion is:

A registered service contract provider that is not a manufacturer or seller of a motor vehicle tire may be the obligor under a service contract sold through an automobile dealership, which contract provides coverage for repair or replacement of the tire or wheel as the result of damage arising from a road hazard.

The Office of General Counsel reaffirms and adheres to the views expressed in that opinion.

For further information, you may contact Senior Attorney Robert Freedman at the New York City office.

Department of Financial Services

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