A. No person in this state shall act as a service warranty association unless licensed by the Insurance Commissioner.
B. A service warranty association shall pay to the Insurance Department a license fee of Four Hundred Dollars ($400.00) for such license for each year, or part thereof, the license is in force.
C. An insurer, while authorized to transact property or casualty insurance in this state, may also transact a service warranty business without additional qualifications or licensure as required by the Service Warranty Act, but shall be otherwise subject to the provisions of the Service Warranty Act.
D. A service warranty association may appoint an administrator or other designee to be responsible for any or all of the administration of service warranties and compliance with the Service Warranty Act.
E. The marketing, sale, offering for sale, issuance, making, proposing to make and administration of service warranties by associations and related service warranty sellers, administrators, and other persons shall be exempt from all provisions of the Insurance Code.
F. An agreement which provides specified scheduled maintenance services over a stated period of time does not constitute insurance or a service warranty.
Added by Laws 2012, c. 150, § 4, eff. Nov. 1, 2012. Amended by Laws 2017, c. 10, § 2, eff. Nov. 1, 2017.
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