Effective - 01 Jan 2009
385.415. 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 following conditions:
(1) The policy states that the issuer of the policy will reimburse or pay on behalf of the vehicle protection product warrantor all covered sums which the warrantor is legally obligated to pay or will provide that all service that the warrantor is legally obligated to perform according to the warrantor's contractual obligations under the provisions of the insured warranties sold 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 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 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; and
(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 director and each insured warrantor sixty days prior to cancellation of the policy;
(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 director, the warrantor shall do either of the following:
a. File a copy of a new policy with the director, before the termination of the prior policy; or
b. Discontinue offering warranties as of the termination date of the policy until a new policy becomes effective and is accepted by the director.
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(L. 2008 S.B. 930 & 947)
Effective 1-01-09
Structure Missouri Revised Statutes
Title XXIV - Business and Financial Institutions
Chapter 385 - Credit Insurance and Service Contracts
Section 385.010 - Purpose clause.
Section 385.015 - Scope of law.
Section 385.020 - Definitions.
Section 385.025 - Credit life and accident insurance, form in which it shall be issued.
Section 385.030 - Amount of insurance permitted — payments, amount of, limited.
Section 385.035 - Term of policy, prepayment of debt, effect of.
Section 385.055 - Who may issue credit life insurance.
Section 385.060 - Reporting and settlement of claims — who may adjust claims.
Section 385.075 - Regulatory powers of director.
Section 385.200 - Definitions.
Section 385.204 - Reimbursement insurance policies, requirements.
Section 385.208 - Deceptive practices.
Section 385.210 - Record-keeping requirements.
Section 385.212 - Termination, notice required.
Section 385.214 - Providers considered agents of insurer, when — indemnification and subrogation.
Section 385.216 - Investigations, administrative orders.
Section 385.218 - Rulemaking authority.
Section 385.220 - Inapplicability.
Section 385.300 - Definitions.
Section 385.302 - Registration required, fee — administrator authorized — provider requirements.
Section 385.304 - Reimbursement insurance policy requirements.
Section 385.306 - Contract requirements, contents.
Section 385.308 - Deceptive practices.
Section 385.310 - Record-keeping requirements.
Section 385.312 - Termination, notice required.
Section 385.314 - Providers considered agents of insurer, when — indemnification and subrogation.
Section 385.316 - Investigations, administrative orders.
Section 385.318 - Rulemaking authority.
Section 385.320 - Inapplicability.
Section 385.321 - Effective date for certain sections.
Section 385.400 - Citation of law.
Section 385.403 - Definitions.
Section 385.406 - Applicability, exceptions.
Section 385.409 - Registration required — records, content — fee — notice for failure to register.
Section 385.415 - Warranty reimbursement insurance policy requirements.
Section 385.418 - Warranty requirements.
Section 385.424 - Prohibited use of names and terms.
Section 385.427 - Record-keeping requirements.
Section 385.430 - Enforcement authority — administrative orders permitted.
Section 385.433 - Rulemaking authority.
Section 385.436 - Admissibility of failure to comply evidence.