N.Y. Comp. Codes R. & Regs. tit. 11 § 390.7

Current through Register Vol. 46, No. 43, October 23, 2024

Section 390.7 - Service contract reimbursement insurance: minimum provisions and requirements

(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.

N.Y. Comp. Codes R. & Regs. Tit. 11 § 390.7