No vehicle protection product shall be sold or offered for sale in this state unless the vehicle protection product warrantor is insured under a warranty insurance policy meeting the following conditions in order to ensure adequate performance under the warranty:

(1) The warranty reimbursement insurance policy is issued by an insurer authorized to do business in this state and provides that the insurer will pay to, or on behalf of, the warrantor one hundred percent (100%) of all sums that the warrantor is legally obligated to pay according to the warrantor’s contractual obligations under the warrantor’s vehicle protection product warranty;

Terms Used In Tennessee Code 56-55-105

  • Commissioner: means the commissioner of commerce and insurance. See Tennessee Code 56-55-102
  • State: when applied to the different parts of the United States, includes the District of Columbia and the several territories of the United States. See Tennessee Code 1-3-105
  • Vehicle protection product: includes , but is not limited to, alarm systems, body part marking products, steering locks, window etch products, pedal and ignition locks, fuel and ignition kill switches, and electronic, radio, and satellite tracking devices. See Tennessee Code 56-55-102
  • warrantor: means a person who is contractually obligated to the warranty holder under the terms of the vehicle protection product warranty agreement. See Tennessee Code 56-55-102
  • warranty: means a written agreement by a warrantor that provides that, if the vehicle protection product fails to prevent loss or damage to a vehicle from a specific cause, then the warranty holder shall be paid specified incidental costs by the warrantor as a result of the failure of the vehicle protection product to perform pursuant to the terms of the warranty. See Tennessee Code 56-55-102
  • Warranty reimbursement insurance policy: means a policy of insurance that is issued to the vehicle protection product warrantor to provide reimbursement to the warrantor, or to pay on behalf of the warrantor, all covered contractual obligations incurred by the warrantor under the terms and conditions of the insured vehicle protection product warranties sold by the warrantor. See Tennessee Code 56-55-102
(2) A true and correct copy of the warranty reimbursement insurance policy has been filed with the commissioner by the warrantor; and
(3) The policy contains the provisions required by § 56-55-106.
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