Utah Code, 31A-6a, Chapter 6a Service Contracts has been amended and expands the definition of a Service Contract Reimbursement Policy or Reimbursement Insurance Policy to now read:
(7) “Service contract reimbursement policy” or “reimbursement insurance policy” means a policy of insurance providing coverage for all obligations and liabilities incurred by the service contract provider or warrantor under the terms of the service contract or vehicle protection product warranty issued by the provider or warrantor.
In addition, Section 31A-6a-103 Requirements for doing business of the Code states:
(1) A service contract or vehicle protection product warranty may not be issued, sold, or offered for sale in this state unless the service contract or vehicle protection product warranty is insured under a reimbursement insurance policy issued by:
- (a) an insurer authorized to do business in this state; or
- (b) a recognized surplus lines carrier.
The information contained in this document cannot be relied upon and should not be construed as Compliance or Legal Advice. Please consult with your own legal and regulatory counsel for Legal Advice and/or Compliance Guidance. Statutes are subject to change so please check with the State of Utah for current regulations.