(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.

Terms Used In Hawaii Revised Statutes 481X-8

  • Administrator: means a person appointed or designated by a provider who administers service contracts and service contract plans on behalf of the provider and subject to the requirements of this chapter. See Hawaii Revised Statutes 481X-2
  • Commissioner: means the insurance commissioner. See Hawaii Revised Statutes 481X-2
  • Contract: A legal written agreement that becomes binding when signed.
  • Contract holder: means a person who is the purchaser or holder of a service contract. See Hawaii Revised Statutes 481X-2
  • Contractual liability insurance policy: means a policy of insurance that is issued to a provider, insures the provider's service contracts, and may provide:

    (1) Reimbursement to the provider for sums that the provider is legally obligated to pay under the insured service contract; or

    (2) The service that the provider is legally obligated to perform under the insured service contract. See Hawaii Revised Statutes 481X-2

  • Provider: means a person who is contractually obligated to the service contract holder under the terms of the service contract. See Hawaii Revised Statutes 481X-2
  • Service contract: means a contract or agreement for a separately stated consideration and a specific duration, to perform or indemnify the repair, replacement, or maintenance of property for operational or structural failure due either to a defect in materials or artisanship, or to normal wear and tear, with or without additional provision for incidental payment or indemnity under limited circumstances, including but not limited to towing, rental, and emergency road service. See Hawaii Revised Statutes 481X-2
(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.

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