(a) To ensure the adequate performance of a warrantor‘s obligations to a consumer, each warrantor shall comply with financial security requirements by insuring each vehicle protection product warranty issued by the warrantor under a reimbursement insurance policy issued by an insurer authorized to engage in the business of insurance in this State or under a surplus lines insurance policy issued by an insurer eligible to place coverage in this State as regulated under the insurance laws of this State.

Terms Used In Hawaii Revised Statutes 481R-5

  • Consumer: means a person in this State who purchases or otherwise possesses a vehicle protection product. See Hawaii Revised Statutes 481R-1
  • Reimbursement insurance policy: means a policy of insurance issued to a warrantor to:

    (1) Provide reimbursement to the warrantor under the terms of the insured vehicle protection product issued or sold by the warrantor; and

    (2) Pay on behalf of the warrantor, in the event of the warrantor's nonperformance, all covered obligations incurred by the warrantor under the terms of the insured vehicle protection product issued or sold by the warrantor. See Hawaii Revised Statutes 481R-1

  • Vehicle protection product: means a product or system, which includes a written warranty, that is:

    (1) Installed or applied to a vehicle; and

    (2) Designed to prevent loss or damage to a vehicle from a specific cause. See Hawaii Revised Statutes 481R-1

  • Warrantor: means a person named under the terms of a vehicle protection product warranty as the contractual obligor to the consumer. See Hawaii Revised Statutes 481R-1
(b) The department may not require any other financial security requirements or financial standards for warrantors. Warrantors shall not be subject to any other financial security requirements under state law.

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