[§481R-6]  Reimbursement insurance policy.  (a) 
In order for a warrantor to comply with section 481R-5(a), the warrantor's
insurance policy shall state that:



(1)  The insurer that issued the policy shall
reimburse or pay on behalf of the warrantor any covered amounts the warrantor
is legally obligated to pay or shall provide the service that the warrantor is
legally obligated to perform according to the warrantor's obligations under the
insured vehicle protection product issued or sold by the warrantor; and



(2)  If the covered amounts are not paid or the
covered service is not provided by the warrantor to a consumer before the
sixty-first day after the date the consumer provides proof of loss, payment
shall be made or the service shall be provided directly from the reimbursement
insurer to the consumer.



(b)  An insurer who issues a reimbursement
insurance policy under this chapter may not cancel the policy until the insurer
delivers to the warrantor a written notice of cancellation that complies with
the requirements adopted for those notices under the insurance laws of this
State.



The warrantor shall forward a copy of the
cancellation notice to the commissioner not later than the fifteenth business
day after the date the notice is delivered to the warrantor.



(c)  The cancellation of a reimbursement
insurance policy shall not reduce the insurer's responsibility for vehicle
protection products issued by the warrantor and insured under the policy before
the date of the cancellation.



(d)  For purposes of this section, a warrantor
shall be considered to be the representative of the insurer who issues the
reimbursement insurance policy for purposes of obligating the insurer to
consumers in accordance with the vehicle protection product and this chapter.
[L 2002, c 237, pt of §1]