385.412. Vehicle protection products, no offer for sale unless warrantor ensures adequate performance.

Vehicle protection products, no offer for sale unless warrantorensures adequate performance.

385.412. No vehicle protection product shall be sold or offered forsale in this state unless the warrantor conforms to either subdivision (1)or (2) of this section in order to ensure adequate performance under thewarranty. No other financial security requirements or financial standardsfor warrantors shall be required. The vehicle protection product'swarrantor may meet the requirements of this section by:

(1) Obtaining a warranty reimbursement insurance policy issued by aninsurer authorized to do business within this state which provides that theinsurer will pay to, or on behalf of, the warrantor one hundred percent ofall sums that the warrantor is legally obligated to pay according to thewarrantor's contractual obligations under the warrantor's vehicleprotection product warranty. The warrantor shall file a true and correctcopy of the warranty reimbursement insurance policy with the director. Thepolicy shall contain the provisions required in section 385.415; or

(2) Maintaining a net worth or stockholder's equity of fifty milliondollars. The warrantor shall provide the director with a copy of thewarrantor's or warrantor's parent company's most recent Form 10-K or Form20-F filed with the Securities and Exchange Commission within the lastcalendar year, or if the warrantor does not file with the Securities andExchange Commission, a copy of the warrantor or the warrantor's parentcompany's audited financial statements that shows a net worth of thewarrantor or its parent company of at least fifty million dollars. If thewarrantor's parent company's Form 10-K, Form 20-F, or audited financialstatements are filed to meet the warrantor's financial stabilityrequirement, then the parent company shall agree to guarantee theobligations of the warrantor relating to warranties issued by the warrantorin this state. The financial information filed under this subdivisionshall be confidential as a trade secret of the entity filing theinformation and not subject to public disclosure if the entity is notrequired to file with the Securities and Exchange Commission.

(L. 2008 S.B. 930 & 947)

Effective 1-01-09