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and applies only to the original service contract purchaser and | | only if no claim has been made prior to its return to the provider.__ | | A 10% penalty per month must be added to a refund that is not paid | | or credited within 45 days after return of the service contract to | | the provider. |
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| | | 6.__Premium taxes.__Provider fees collected on service | | contracts are not subject to premium taxes.__Premiums for | | reimbursement insurance policies are subject to applicable taxes. |
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| | | 7. Licensing exemptions.__Except for the registration | | requirement in subsection 3, providers and related service | | contract sellers, administrators and other persons marketing, | | selling or offering to sell service contracts are exempt from any | | licensing requirements of this State. |
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| | | §7004.__Required provisions; reimbursement insurance policy |
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| | | 1. Statement of policy.__Reimbursement insurance policies | | insuring service contracts issued, sold or offered for sale in | | this State must state that the insurer that issued the | | reimbursement insurance policy shall reimburse or pay on behalf | | of the provider any covered sums the provider is legally | | obligated to pay or shall provide the service that the provider | | is legally obligated to perform according to the provider's | | contractual obligations under the insured service contracts | | issued or sold by the provider. |
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| | | 2.__Application to reimbursement insurance company.__In the | | event covered service is not provided by the service contract | | provider within 60 days of proof of loss by the service contract | | holder, the contract holder is entitled to apply directly to the | | reimbursement insurance company. |
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| | | §7005.__Required disclosures; service contracts |
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| | | 1.__Disclosures.__Service contracts marketed, sold, offered | | for sale, issued, made, proposed to be made or administered in | | this State must be written, printed or typed in clear, | | understandable language that is easy to read and must disclose | | the requirements set forth in this section, as applicable. |
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| | | A.__Service contracts insured under a reimbursement | | insurance policy pursuant to section 7003, subsection 4, | | paragraph A must contain a statement in substantially the | | following form:__"Obligations of the provider under this | | service contract are insured under a service contract | | reimbursement insurance policy."__The service contract must | | state the name and address of the insurer. |
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| | | B.__Service contracts not issued under a reimbursement insurance | | policy pursuant to section 7003, subsection 4, |
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