Unless otherwise lawfully transacting the business of insurance pursuant to a certificate of authority issued pursuant to § 700 of the Insurance Code for the appropriate class, a service contract administrator or third-party seller acting as an obligor on a service contract without having a service contract reimbursement insurance policy covering all service contracts under which the service contract administrator or third-party seller is obligated shall be deemed to be unlawfully transacting the business of insurance and shall be subject to subdivision (b) of Section 700 and § 12921.8 of the Insurance Code.

(Added by Stats. 2010, Ch. 543, Sec. 5. (AB 2111) Effective January 1, 2011. Repealed as of January 1, 2028, pursuant to Section 9855.9.)

Terms Used In California Business and Professions Code 9855.85

  • administrator: means a person who performs or arranges the collection, maintenance, or disbursement of moneys to compensate any party for claims or repairs pursuant to a service contract, and who also performs or arranges any of the following activities on behalf of service contract sellers:

    California Business and Professions Code 9855

  • Contract: A legal written agreement that becomes binding when signed.
  • seller: means a person who sells or offers to sell a service contract to a service contractholder, including a person who is the obligor under a service contract sold by the seller, manufacturer, or repairer of the product covered by the service contract. See California Business and Professions Code 9855
  • Service contract: means a contract in writing to perform, over a fixed period of time or for a specified duration, services relating to the maintenance, replacement, or repair of consumer goods and may include provisions for incidental payment of indemnity under limited circumstances, including, but not limited to, power surges, food spoilage, or accidental damage from handling. See California Business and Professions Code 9855
  • Service contract reimbursement insurance policy: means a policy of insurance issued by an insurer admitted to do business in this state providing coverage for all obligations and liabilities incurred by a service contract seller under the terms of the service contracts sold in this state by the service contract seller to a service contractholder. See California Business and Professions Code 9855
  • Subdivision: means a subdivision of the section in which that term occurs, unless some other section is expressly mentioned. See California Business and Professions Code 15
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