§ 26.1-40-18 — Automobile warranties construed

1. A person who issues a written automobile warranty contract, automobile mechanical
breakdown contract, or automobile service contract shall maintain a policy of
insurance which provides coverage for the person's contractual obligation.
2. The policy must be issued by an insurer licensed, registered, or otherwise authorized
to do business in this state. From the time the policy is filed with the commissioner:
a. The insurer shall maintain surplus as to policyholders and paid-in capital of at
least fifteen million dollars and annually file copies of the insurer's audited
financial statements, the national association of insurance commissioners annual
statement, and the actuarial certification required by and filed in the insurer's
state of domicile; or
b. The insurer shall maintain surplus as to policyholders and paid-in capital of
between fifteen million dollars and ten million dollars, demonstrate to the
satisfaction of the commissioner that the company maintains a ratio of net written
premiums, wherever written, to surplus as to policyholders and paid-in capital of
not greater than three to one, and annually file copies of the insurer's audited
financial statements, the national association of insurance commissioners annual
statement, and the actuarial certification required by and filed in the insurer's
state of domicile.
3. This section does not apply to an original equipment manufacturer.