1. (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. (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. (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.

Statutory/Other Authority

ORS 646.267 & 646.285

Statutes/Other Implemented

ORS 646.263 - 646.285

History

ID 7-1996, f. & cert. ef. 5-28-96
ID 6-1995(Temp), f. & cert. ef. 9-12-95