[§481X-8]  Contractual liability insurance
policies.  (a)  Contractual liability insurance policies in this State
shall provide that if covered service is not provided by the service contract
provider or administrator within sixty days of proof of loss by the contract
holder, the contract holder is entitled to apply directly to the contractual
liability insurance company for services under the service contract that are
covered under the policy.



(b)  A contractual liability insurance policy
insurer shall not terminate the policy until it has issued a notice of
termination required by the commissioner under the insurance laws of this
State.  The termination of a contractual liability insurance policy shall not
reduce the insurer's responsibility for service contracts issued by providers
prior to the date of termination.



(c)  A provider covered by a contractual
liability insurance policy shall be considered the agent of the contractual
liability insurance policy insurer, for purposes of determining duties owed by
the insurer to contract holders in accordance with the service contract and
this chapter.



(d)  Insurers issuing reimbursement insurance
to providers are deemed to have received the premiums for the insurance upon
the payment of provider fees by consumers for service contracts issued by the
insured provider. [L 2000, c 221, pt of §2]