Maine Revised Statutes Title 24-A Sec. 7104 – Reimbursement insurance policy
Current as of: 2023 | Check for updates
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1. Scope of policy. A reimbursement insurance policy insuring service contracts issued, sold or offered for sale in this State must unconditionally obligate the insurer that issued the reimbursement insurance policy to reimburse or pay on behalf of the provider any sums, including the refund of unearned provider fees, the provider is legally obligated to pay directly to the service contract holder or, in the event of the provider’s nonperformance, to provide the service that the provider is legally obligated to perform according to the provider’s contractual obligations under the service contracts issued or sold by the provider.
[PL 2011, c. 345, §4 (NEW); PL 2011, c. 345, §7 (AFF).]
Terms Used In Maine Revised Statutes Title 24-A Sec. 7104
- Contract: A legal written agreement that becomes binding when signed.
- Provider: means a person who is contractually obligated to a service contract holder under the terms of a service contract. See Maine Revised Statutes Title 24-A Sec. 7102
- Reimbursement insurance policy: means a policy of insurance, issued to a provider, that provides reimbursement to the provider under the terms of the insured service contracts issued or sold by the provider or, in the event of the provider's nonperformance, pays to service contract holders on behalf of the provider all covered contractual obligations incurred by the provider under the terms of the insured service contracts issued or sold by the provider. See Maine Revised Statutes Title 24-A Sec. 7102
- Service contract: includes a contract or agreement sold for a separately stated consideration for a specific duration that provides for any of the following:
A. See Maine Revised Statutes Title 24-A Sec. 7102Service contract holder: means a person who is the purchaser or holder of a service contract. See Maine Revised Statutes Title 24-A Sec. 7102
2. Application to insurer. A reimbursement insurance policy must provide that if a covered service is not provided by the provider within 60 days of proof of loss by a service contract holder, or unearned provider fees are not returned within 60 days of a valid refund request, the service contract holder may apply directly to the reimbursement insurance company for reimbursement or performance.
[PL 2011, c. 345, §4 (NEW); PL 2011, c. 345, §7 (AFF).]
SECTION HISTORY
PL 2011, c. 345, §4 (NEW). PL 2011, c. 345, §7 (AFF).