Once a contract holder pays the corresponding service contract fee to a provider, and provided said service contract is insured under a reimbursement insurance policy, the holder of the contract shall be entitled to any benefit provided by the policy, regardless of whether the provider has paid or not the premium of the corresponding reimbursement insurance policy. The above provision shall not affect the reciprocal rights and obligations between the insurer and the provider. In those cases in which a provider recruits other persons for the promotion and sale of service contracts covered under a reimbursement insurance policy, the provider shall have the obligation of notifying the insurer of the identity of said other persons.
History —Ins. Code, added as § 21.320 on Sept. 8, 2000, No. 392, § 3.