(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.
(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.
FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature or via Westlaw before relying on it for your legal needs.
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