(1) No vehicle protection product shall be sold or offered for sale in this state unless the vehicle protection product warrantor can prove financial solvency as provided under subsection (2) of this section or is insured under a warranty insurance policy meeting the following conditions in order to ensure adequate performance under the warranty:
(a) The warranty reimbursement insurance policy is issued by an insurer authorized to do business in this state and provides that the insurer will pay to, or on behalf of, the warrantor one hundred percent (100%) of all sums that the warrantor is legally obligated to pay according to the warrantor’s contractual obligations under the warrantor’s vehicle protection product warranty;
(b) A true and correct copy of the warranty reimbursement insurance policy has been filed with the Motor Vehicle Commission by the warrantor; and
(c) The policy contains the provisions required by Section 63-29-11.
(2) As an alternative to warranty reimbursement insurance under subsection (1) of this section, the vehicle’s protection warrantor or its parent company must:
(a) Maintain a net worth of stockholders’ equity of Fifty Million Dollars ($50,000,000.00); and
(b) Provide the Motor Vehicle Commission with a copy of the warrantor’s or the warrantor’s parent company’s most recent Form 10-K or Form 20-F filed with the Securities Exchange Commission within the last calendar year or, if the warrantor does not file with the Securities Exchange Commission, a copy of the warrantor’s or the warrantor’s parent company’s audited financial statements that shows a net worth of the warrantor or its parent company of at least Fifty Million Dollars ($50,000,000.00). If the warrantor’s parent company’s Form 10-K, Form 20-F or audited financial statements are filed to meet the warrantor’s financial stability requirement, then the parent company shall agree to guarantee the obligations of the warrantor relating to the warranties issued by the warrantor in this state. The audited financial statements filed pursuant to this subsection shall be exempt from public disclosure under the Mississippi Public Records Act of 1983.
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