(1)
When an obligor or applicant for registration relies on a reimbursement
insurance policy for purposes of the financial stability requirement in ORS
646.267, the obligor or
applicant must submit a copy of the policy to the Director.
(2) A reimbursement insurance policy insuring
service contracts issued, sold or offered for sale in this state shall
conspicuously state that, upon failure of the obligor to perform under the
contract, the insurer that issued the policy shall pay on behalf of the obligor
any sums the obligor is legally obligated to pay or shall provide the service
that the obligor is legally obligated to perform according to the obligor's
contractual obligations under the service contracts issued by the obligor. The
following is an example of wording that will be acceptable for the purpose of
this section:
Upon failure of the obligor to perform under the
contract, _________ (name of insurer issuing policy) shall pay on behalf of the
obligor any sums the obligor is legally obligated to pay or shall provide the
service that the obligor is legally obligated to perform according to the
obligor's contractual obligation under the service contracts issued by the
obligor, and _________ (insurer) will pay claims against the obligor for return
of the unearned purchase price of the service contract.
(3) For the purpose of payment
under a reimbursement insurance policy, an obligor fails to perform under the
service contract when the obligor fails to perform as agreed in the service
contract by a date that is not later than the 60th day after the date of the
demand for performance or by a date specified in the service contract for
performance, whichever date is earlier.
Notes
Or. Admin. Code
§
836-200-0040
ID 6-1995(Temp), f. &
cert. ef. 9-12-95; ID 7-1996, f. & cert. ef.
5-28-96
Stat. Auth.: ORS
646.267 & ORS
646.285
Stats. Implemented: ORS
646.263 - ORS
646.285
