A seller or representative making a refund must keep a copy of the required documents in this paragraph and provide a copy to the contract service company within 45 days of the service or Agency request, either the service contract company or the seller. Where it is established that the service contract company has not declared the declared debts, the Agency requires a correct report reflecting the formal commitments to be submitted by the contract service company within 10 business days of receipt of the written notification to the Office. 634.241 Prohibition of the frontage.-… A licensed insurer or a licensed business for automotive services companies must not act as a fronting business for an unauthorized insurance company or an unauthorized company for auto service contracts. A “leading company” is a licensed insurer or licensed auto service company that, through reinsurance or other means, is generally transferred to one or more unauthorized or non-auto service insurers, which essentially represent the total risk of loss associated with service contracts it has written in that state. If the service contract is terminated by the insurer or service contract company, the premium return must not be less than 100% of the unpaid premium, less the potential fees paid to the agreement. If, after 60 days, the service contract is terminated by the service contract holder, lender, financial company or creditor, insurer or service contract company returns directly to the contract holder at least 90 per cent of the unearned proportional premium, net of the fees paid on the agreement. Cancellations initiated by lenders, creditors or financial companies are only valid if they have been approved by the terms of the service contract. The service contract company remains responsible for the full refund of the consumer in the event of termination of the service contracts. However, the seller and agent are responsible for refunding the unearned proportional commission. A contract service company may make refunds through the vendor or issuing agent referred to in paragraphs c and d.
Payments must not double the benefits or expenses paid by the insurer to the service contract holder who provides comprehensive auto insurance coverage for the stolen vehicle; However, the payment of a cost of vehicle protection of $5,000 or less does not result in the reproduction of benefits or charges payable under comprehensive automobile insurance; The entity requires that the service contract company has not assessed the assets of a service contract under applicable legislation or is not assessed by the contractual service company to properly revalue the asset or replace the asset with an asset suitable for the entity within 30 days of the AMF`s written notification of that provision. whether the withdrawal of assets from the organization`s assets would adversely affect the solvency of the entity.