- 5 - * * * BETWEEN THE DEALER [i.e., each petitioner] AND YOU [the vehicle purchaser]” and is “NOT AN INSURANCE POLICY". An EWA further provides that “Dealer in regards to this contract is acting as a Principal and not as an Agent on behalf of any insurer.” An EWA also states: “Issuing Dealer has insurance with Western General Insurance Co., * * * – a Licensed Insurer.” Finally, an EWA provides: NOTICE: If a Breakdown Claim has been filed with the Issuing Dealer who has failed to pay the claim within sixty (60) days after proof of loss has been filed with the Issuing Dealer, you the Service Contract Purchaser shall also be entitled to make a Direct Claim against the Issuing Dealer’s insurance company, Western General Insurance Company * * * During the years in issue, each petitioner sold EWA’s pursuant to an agreement (Western General Agreement) with the Western General Insurance Co. of Encino, California (Western General), under which Western General assumed petitioners’ liabilities under the EWA’s in exchange for a single lump-sum payment with respect to each EWA, referred to in the agreements as an “insurance premium and policy fee”. Under the Western General Agreement, Western General agreed “to issue and maintain individual insurance policy coverage at DEALER’S [i.e., each petitioner’s] expense which shall insure the DEALER for covered costs of repairs and/or replacements incurred by the DEALER and covered under the * * * EWA”. Each petitioner agreed to sell EWA’s only through the forms provided by Western General and toPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011