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The Administrator Agreement provided for release of reserves
to other parties under the following circumstances:
1. When a claim for covered repairs was submitted by an
authorized repair facility other than the dealer that sold the
VSC, the Administrator withdrew funds for payment.
2. Under the program administered by MBP, investment income
not used to pay claims or refunds was payable to the
Administrator upon expiration of the contract to which it was
attributable, provided that the dealer's account would remain at
an actuarially safe level.
3. Upon expiration of all the contracts of a dealer and
payment of all claims, any unconsumed reserves that the dealer
had forfeited for one reason or another became the property of
the Administrator.
4. Travelers was entitled to reimbursement from a dealer's
account in the event that it was required to pay a claim or
refund by reason of the dealer's delinquency or default.
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