Exhibit 10(u)


                        Great American Insurance Company
                                580 Walnut Street
                              Cincinnati, OH 45202

                                DECLARATIONS PAGE
                             SERVICE PLAN AGREEMENT
                                INSURANCE POLICY

Named Insured:  Warrantech Consumer Product Services, Inc.
                Warrantech Carribean, LTD

Policy Number:         1833232
CT Policy

Mailing Address:       1225 Ponce De Leon Avenue             Policy is: New
                       Caso Building, Suite 1401-02
                       San Juan, PR 00907-3921

Policy Period:         From: February 1, 2001                To: UNTIL CANCELLED
                       12:01 A.M., Standard Time at the
                       Mailing Address Shown Above.

Limits of Liability:   Per Section VI. of the Policy

Premium:               Per Premium Reporting Provision in the Policy

Aggregate Reserve:     100% of all service contracts premiums less $____________
                       per contract

Forms & Endorsements:

             WAR-GN-1002 (12/00)         Service Plan Agreement Insurance Policy
             WAR-GN-0003 (12/00)         Signatures
             WAR-GN-0004 (12/00)         Additional Named Insureds
             WAR-GN-0005 (12/00)         Exclusions
             WAR-GN-0008 (12/00)         Connecticut Changes



This Declaration, and the Policy and Endorsements, if any, listed
above and included, complete this Policy.

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                     SERVICE PLAN AGREEMENT INSURANCE POLICY

Notwithstanding  the limitations for losses in excess of the Aggregate  Reserve,
Great American  Insurance  Company  (hereafter  referred to as the Company),  in
consideration  of the  payment of the  premium  and  subject to the  conditions,
provisions and other  requirements of this Policy,  agree with the Named Insured
shown in the Declarations Page as follows:

1.   INSURING AGREEMENT

     The Company agrees to pay:

     A.   to the Named Insured; or

     B.   on  behalf  of  the  Named  Insured  to  reimburse  repair  facilities
          authorized to perform repairs on behalf of the Named Insured

All those sums that the Named Insured becomes legally obligated to pay as Claims
to a Service Plan Agreement  Holder under a valid Service Plan Agreement  issued
by the Named Insured and payable under the terms of this policy.

Reimbursement  of the  losses  shall  only be an  obligation  of the  company to
reimburse the insured for losses in excess of an Aggregate  Reserve equal to the
program per service  contract  reserve amounts for each Program Service Contract
Account reported to the company and covered hereunder.

II.  DEFINITIONS

     The  following  key words have  specific  meanings  and appear in bold type
     throughout this policy:

A.   Named Insured means the person(s) and/or organization(s) shown as the Named
     Insured in the Declarations Page which is attached to this Policy.

B.   Service  Plan  Agreement  means a Service  Plan  Agreement  or Service Plan
     Extension Agreement issued by the Named Insured to a Service Plan Agreement
     Holder:

     1.   while this Policy is in force and for which the premium has been paid;
          and

     2.   on a product on the  schedule  of  approved  products on file with the
          Company; and

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     3.   on a form the content of which  relative to the  coverage  provided by
          this Policy has been approved in writing by the Company; and

     4.   for which the Named  Insured's  Contractual  Obligations  to a Service
          Plan Agreement  Holder is for a term no longer than one hundred twenty
          (120) months.

C.   Service  Plan  Agreement  Holder  means any  natural  person or other legal
     entity who legally  acquires  the rights to benefits  under a Service  Plan
     Agreement as defined in Section II.b.

D.   Named Insured's Contractual  Obligations to a Service Plan Agreement Holder
     means  the  duty or  liability  of the  Named  Insured  to a  Service  Plan
     Agreement  Holder to repair or replace the  defective  or damaged  parts or
     products  with like kind and quality in  accordance  with the Service  Plan
     Agreement.

E.   Claims  means a claim for  expenses  incurred by a Service  Plan  Agreement
     Holder in  accordance  with and payable  under the terms of a valid Service
     Plan Agreement.

F.   Loss means a Claim for which the Named Insured is legally  obligated to pay
     under the Named Insured's Contractual  Obligations as stated in the Service
     Plan Agreement.

III. DUTIES OF THE NAMED INSURED

     The Named Insured agrees to the following:

A.   REPORTING

     The Named Insured will report  monthly  records  required by the Company of
     Service  Plan  Agreements  issued by the Named  Insured  or its  authorized
     representative.  Reports are due within twenty-five (25) days from the last
     day of each month.

B.   PAYMENT OF PREMIUMS

     The first Named Insured is responsible  for the payment of all premiums due
     under each monthly  report of Service Plan  Agreements  issued by the Named
     Insured or its authorized representative.

C.   COMMENCEMENT OF COVERAGE

     The Named  Insured  agrees that the Company will have no  obligation  under
     this policy unless a valid Service Plan Agreement has been issued.

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D.   NOTICE OF CLAIM

     When a Service Plan Agreement  Holder  presents a Claim,  the Named Insured
     will  process  the  Claim per the  agreement  stated  in the  Service  Plan
     Agreement.

E.   PROOF OF LOSS

     The Named  Insured  will give  written  proof of all claims to the Company.
     Such proof will be provided monthly  evidencing the Service Plan number and
     total amount of claims paid by item.  The Named Insured agrees to submit to
     examination  under oath by any person  named by the Company as often as may
     be required to verify any proof of Loss.

IV.  EXCLUSIONS

     This Policy  provides  coverage  only for the Named  Insured's  Contractual
     Obligation under a valid Service Plan Agreement and does not apply to any:

     A.   Liability  for  damages  caused by repair  work or  failure to perform
          repair  work by the Named  Insured,  its agents or  employees,  or any
          other repair facility, its agents or employees;

     B.   Duties or  liabilities  arising out of the Named  Insured's  sale of a
          product which is the subject of a Service Plan Agreement,  or any part
          of such product;

     C.   Liability for negligence;

     D.   Duty or  liability  to anyone  other than the Service  Plan  Agreement
          Holder;

     E.   Duties, liabilities or claims arising from any acts of fraud, or other
          dishonest  or  criminal  acts of the  Named  Insured,  its  agents  or
          employees.

     F.   Damage claimed for the withdrawal, inspection, repair, replacement, or
          loss of use of the Named  Insured's  products or work  completed by or
          for the Named  Insured or of any  property  of which such  products or
          work form a part,  if such  products,  work or property are  withdrawn
          from the market or from use because of any known or  suspected  defect
          or deficiency therein.

<PAGE>

     G.   Liability for any Service Plan Agreement  issued on a product,  not on
          the Company's schedule of approved products on file with the Company.

     H.   Liability for any Service Plan Agreement the content of which relative
          to the  coverage  provided  by this  Policy has not been  approved  in
          writing  by the  Company  and any  claim  or loss  arising  out of any
          obligations not expressly contained in the Service Plan Agreement.

     I.   Liability  for  loss  of  use  or  consequential  damages,  except  as
          expressly contained in the Service Plan Agreement.

     J.   Fines,  penalties,  punitive  damages,  exemplary  damages  or  treble
          damages in whatever form assessed (unless prohibited by law).

     K.   Liability  arising  out  of  implied  warranties  of  merchantability,
          implied warranties of fitness or strict liability.

V.   PREMIUMS AND RATES

     A.   Premium  charges for each Service Plan  Agreement will be made per the
          company's  rates and rules in  effect  at the time each  Service  Plan
          Agreement is issued.

     B.   The Company from time to time may effect  changes in the Rate Schedule
          applicable to this Policy. Such changes will be made by endorsement to
          the Policy stating the date such changes are effective.

VI.  LIMITS OF LIABILITY

     The limit of the Company's liability is as follows:

     The Company's limit of liability,  with respect to any one claim, shall not
     exceed the  liability  the Named  Insured has assumed  under a Service Plan
     Agreement.

VII. POLICY TERM

     The Policy is issued and goes into effect at the Date and Time shown on the
     Declaration  Page.  This is a  continuous  Policy and will remain in effect
     until cancelled by the Named Insured or the Company.

VIII. POLICY CANCELLATION

     A.   BY THE COMPANY

<PAGE>

          The Company shall have the right to cancel the Policy without cause by
          giving  one  hundred  eighty  (180) days  written  notice to the Named
          Insured.  Also,  the Company shall have the right to cancel the policy
          by giving thirty (30) days written notice:

          1.   If required to do so by any regulatory body;

          2.   In the event the Named  Insured does not make premium  payment as
               required;

          3.   In the event of any act of fraud by the Named Insured;

          4.   In the  event of any  material  violation  of any of the terms of
               this Policy, however, if the Named Insured is able to show within
               thirty  (30) days to the  satisfaction  of the  Company  that the
               material  violation has been corrected,  then the Policy shall be
               reinstated.

     Notice  of  Cancellation  will be  delivered  or sent by  registered  mail,
     certified  mail  or  mail  evidenced  by  the  United  States  Post  Office
     certificate of mailing.

B.   BY THE INSURED

     The Named Insured has the right to cancel this policy:

     1.   By  sending  the  Company  written  notice of its intent to cancel the
          Policy showing the date cancellation is to be effective;

     2.   By returning  the original  policy or a signed Lost Policy  Release to
          the Company the date cancellation is to be effective.

C.   EFFECT OF CANCELLATION

     Cancellation of this policy will not affect the duties of the Named Insured
     or the  Company,  as set forth in this  Policy,  as respects  Service  Plan
     Agreements issued before the effective date of cancellation.

IX.  POLICY PERIOD

     This Policy  applies  only to Service  Plan  Agreements  issued  during the
     Policy Period stated in the Declarations.

X.   GENERAL PROVISIONS

A.   INSUREDS REPRESENTATIONS

<PAGE>

     By acceptance of this Policy,  the Named Insured agrees that all statements
     contained in the application for this policy and on the  Declarations  Page
     attached  hereto are accurate and  complete,  the  statements  are based on
     representations  the Named  Insured  made to the  Company.  This  Policy is
     issued  relying  upon  the  truth  of  such  statements  and  includes  all
     agreements between the Named Insured and the Company.

B.   INSPECTION AND AUDIT

     The Company  will have the right to inspect the Named  Insured's  premises,
     books and records as they pertain to coverage  provided  under this Policy.
     This right will extend until one (1) year after Named Insureds Service Plan
     Agreements are no longer in effect.

C.   SUBROGATION AND RECOVERIES

     1.   In the event of any  payment  by the  Company  under the  policy,  the
          Company  will be  entitled  to all of the  Named  Insured's  rights of
          recovery against any person or entity.  The Named Insured will execute
          and deliver  instruments  and papers and do whatever is  necessary  to
          secure such  rights.  The Named  Insured  will do nothing to interfere
          with such rights.

     2.   After a payment of Loss by the Company,  all amounts  recovered by the
          Named  Insured for which the Named Insured has been  indemnified  will
          become the  property of and be  forwarded  to the Company by the Named
          Insured up to the total amount of the loss paid by the Company.

     3.   The Company will not be entitled to any  subrogation  proceeds  unless
          and until the Named Insured has been fully reimbursed the Loss.

D.   NO BENEFIT TO BAILEE

     The insurance afforded by this Policy will not inure directly or indirectly
     to the benefit of any carrier or other Bailee for Loss covered by a Service
     Plan Agreement.

E.   CHANGES/AMENDMENTS

     No waiver or changes of the terms of this  Policy  will be made except when
     done so in writing, signed by an authorized  representative of the Company.
     Written changes must be attached to and form a part of the Policy.

<PAGE>

F.   ASSIGNMENT BY INSURED

     Assignment  of interest  under this Policy shall not bind the Company until
     its consent is endorsed hereon.

G.   INSOLVENCY OR BANKRUPTCY OF INSURED

     The  insolvency  or  bankruptcy  of the Named  Insured will not relieve the
     Company  of its  obligations  under  this  policy.  Should a  judgement  be
     rendered against the insolvent or bankrupt Named Insured,  the Company will
     be liable for the  amount of such  judgement  not to exceed the  applicable
     limit of liability under the policy.

H.   ACTION AGAINST COMPANY

     No action will lie against the  Company  unless,  as a condition  precedent
     thereto:

     1.   The Named Insured has fully  complied with all terms and conditions of
          this Policy.

     2.   The amount of the Named  Insured's  obligation to pay has been finally
          determined either by judgement against the Named Insured (after actual
          trial)  or  written  agreement  of the  Named  Insured,  claimant  and
          Company; and

     3.   Unless commenced within twelve (12) months of the date of the Loss.

     Any repair  facility  authorized by the Named Insured to perform repairs on
     behalf of the Named  Insured or the legal  representatives  thereof who has
     secured such judgement or written agreement shall thereafter be entitled to
     recover  under this policy to the extent of the  insurance  afforded  under
     this  Policy.  No person or  organization  shall have any right  under this
     Policy  to join the  Company  as a party to any  action  against  the Named
     Insured to determine the Named Insured's liability.  The Company shall also
     not be impleaded by the Named Insured or his legal representatives.

I.   CONFORMITY WITH LAW

     The terms of this  policy  which are in conflict  with the  statutes of the
     state  wherein this policy is issued are hereby  amended to confirm to such
     statutes.

J.   OTHER INSURANCE

     The Named  Insured  warrants  that this is the only Service Plan  Agreement
     Insurance Policy applicable to Service Plan Agreement Holder Claims.

<PAGE>

K.   DEDUCTIBLE/AGGREGATE RESERVE

     The  insured has  executed a Trust  Agreement  with  Company as insurer and
     beneficiary.  The insured agrees to deposit in the Trust an amount equal to
     the agreed upon reserve for each service contract.

     It is hereby  agreed that all funds  deposited  with Trustee into the Trust
     Account,  either before or after a loss has occurred but net of withdrawals
     made and any Trust  fees paid from the Trust  Fund,  are  available  to the
     company as a  reimbursement  of losses paid under the policy in  accordance
     with the  terms of the  Trust  Agreement.  To the  extent  that  funds  are
     available  in the Trust  Account,  such  amounts  shall be  considered  the
     Aggregate Policy Deductible.


<PAGE>


                        Great American Insurance Company

                                   SIGNATURES

THE ONLY SIGNATURES APPLICABLE TO THIS POLICY ARE THOSE REPRESENTING THE COMPANY
NAMED ON THE FIRST PAGE OF THE DECLARATIONS.

     By signing  and  delivering  the policy to you, we state that it is a valid
contract.

                       Great American Insurance Companies
                    580 Walnut Street, Cincinnati, Ohio 45202


     /s/ Carl H Lindner III                      /s/ Kara Holly Herrill
     President                                   Secretary










                                                 ------------------------------
                                                        Authorized Agent


<PAGE>

                        Great American Insurance Company

                      ADDITIONAL NAMED INSUREDS ENDORSEMENT

         THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

       This endorsement modifies insurance provided under the following:

                    SERVICE PLAN AGREEMENT INSURANCE POLICY.

It is agreed that the following Named Insureds are added to the policy:

Dealers or  Retailers  who sell  Service  Plan  Agreements  administered  by the
insured and who are listed in the Schedule on file with the Company.


<PAGE>


                        Great American Insurance Company

               EXCLUSION - YEAR 2000 COMPUTER, COMPUTER SOFTWARE,
            MICROPROCESSOR AND YEAR 2000 COMPLIANCE-RELATED PROBLEMS

         THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

        This endorsement modifies insurance provided under the following:

                     SERVICE PLAN AGREEMENT INSURANCE POLICY

It is agreed that the following exclusion is added to section IV. EXCLUSIONS:

M.   Liability arising out of:

     1.   Any actual or alleged failure, malfunction or inadequacy of:

          a.   Any of the  following  due to  potential  or  actual  "year  2000
               compliance-related problems":

               1.   computer hardware;

               2.   computer software;

               3.   computer operating systems;

               4.   computer networks;

               5.   microprocessors (computer chips);

               6.   any  other   computerized   or   electronic   equipment   or
                    components; or

          b.   Any other  products,  services  or  functions  that  directly  or
               indirectly  utilize or rely upon, in any manner, any of the items
               listed in paragraph 1.a. of this endorsement due to any potential
               or actual "year 2000 compliance-related problems."

     2.   Any  advice,  consultation,   evaluation,  inspection,   installation,
          maintenance,  service, repair or replacement done by the Named Insured
          or for the Named Insured to determine,  rectify or test, any potential
          or actual "year 2000 compliance-related problems."

"Year 2000  compliance-related  problems" means the inability of those products,
services or functions described in paragraphs 1.a or 1.b to correctly recognize,
distinguish, interpret or accept the date field of the year 2000 and beyond.


                                                  ------------------------------
                                                        Insured's signature

<PAGE>

                        Great American Insurance Company

                               CONNECTICUT CHANGES

         THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

        This endorsement modifies insurance provided under the following:

                     SERVICE PLAN AGREEMENT INSURANCE POLICY

If the Company  cancels this  Policy,  the Company will send at least sixty (60)
days advance notice of its intention to cancel to the Insurance  Commissioner of
Connecticut specifying the reason for the cancellation.


<PAGE>


                        Great American Insurance Company

                      ADDITIONAL NAMED INSUREDS ENDORSEMENT

               THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT
                                   CAREFULLY.

        This endorsement modifies insurance provided under the following:

                    SERVICE PLAN AGREEMENT INSURANCE POLICY.

It is agreed that the  following is added to the policy as an  additional  Named
Insured:

MUEBLELECTRIC
P.O. Box 2848
Bayamon, PR 00960

Attn. Mr. Jacobo Duenas







                             Policy Number: 1833232
Date: June 20, 2001

                                                 -----------------------------
                                                       Authorized Agent