In light of the decision of the U.S. Court of Appeals for the Ninth Circuit in National Warranty Insurance Company, RRG v. Greenfield , will the Department now change its position that service contract reimbursement insurance issued by a risk retention group does not constitute acceptable proof of financial responsibility for purposes of service contract provider registration, under N.Y. Ins. No, the Department will not change its position. Insurer B is a financially secure company.
Law governs the issuance of service contracts.
Such means may include or exclude insurance coverage obtained from an admitted insurance company, an excess lines company, a risk retention group, or any other source regardless of whether coverage is obtained directly from an insurance company or through a broker, agent, purchasing group, or any other person. If an insurer providing the service contract reimbursement insurance is not an insurer authorized to issue such insurance in New York State, whether or not the insurer happens to be a risk retention group, the insurance it writes does not constitute proof of financial responsibility for a service contract provider in New York. Under 5913 of the N.Y. Ins. The above opinion is informal and not binding on any court. For further information, you may contact Associate Attorney Barbara A. Kluger at the New York City Office.