Bill Summaries: S651 SERVICE AGREEMENTS/ALLOW RESERVE ACCOUNT.

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  • Summary date: Apr 19 2011 - View Summary

    Identical to H 575, filed 3/31/11.

    Rewrites GS 66-373 (insurance policy requirements for service agreements) to provide that in lieu of complying with current provisions of the section, the company or person may maintain a funded reserve account of not less than 40% of gross consideration received, less claims paid, on the sale of the service contract for all in-force contracts. The account is subject to examination and review by the Commissioner of Insurance on request. Effective July 1, 2011.