Oklahoma § 36-6655 - Warranty reimbursement insurance policy requirements

§ 36-6655. Warranty reimbursement insurance policy requirements

No warranty reimbursement insurance policy shall be issued,

sold, or offered for sale in this state unless the policy meets the

conditions set forth in this section and the Insurance Commissioner

has not disapproved the policy.

1. The policy states that the issuer of the policy shall

reimburse or pay on behalf of the vehicle protection product

warrantor all covered sums which the warrantor is legally obligated

to pay or shall provide all service that the warrantor is legally

Oklahoma Statutes - Title 36. Insurance

obligated to perform according to the warrantor’s contractual

obligations under the provisions of the insured warranties issued by

the warrantor.

2. The policy states that in the event payment due under the

terms of the warranty is not provided by the warrantor within sixty

(60) days after proof of loss has been filed according to the terms

of the warranty by the warranty holder, the warranty holder may file

directly with the warranty reimbursement insurance company for

reimbursement.

3. The policy provides that a warranty reimbursement insurance

company that insures a warranty shall be deemed to have received

payment of the premium if the warranty holder paid for the vehicle

protection product and the insurer’s liability under the policy

shall not be reduced or relieved by a failure of the warrantor, for

any reason, to report the issuance of a warranty to the insurer.

4. The policy has the following provisions regarding

cancellation of the policy:

a.

the issuer of a reimbursement insurance policy shall

not cancel such policy until a notice of cancellation

in writing has been mailed or delivered to the

Insurance Commissioner and each insured warrantor,

b.

the cancellation of a reimbursement insurance policy

shall not reduce the issuer’s responsibility for

vehicle protection products sold prior to the date of

cancellation, and

c.

in the event an insurer cancels a policy that a

warrantor has filed with the Commissioner, the

warrantor shall do either of the following:

(1) file a copy of a new policy with the

Commissioner, before the termination of the prior

policy, providing no lapse in coverage following

the termination of the prior policy, and

(2) discontinue offering warranties as of the

termination date of the policy until a new policy

becomes effective and is accepted by the

Commissioner.

Added by Laws 2008, c. 353, § 7, eff. Jan. 1, 2009.