(1) A provider shall guarantee the provider's obligations by an insurance policy, issued by an insurer, that pays the contract holder if the provider fails to perform the obligations in accordance with the vehicle value protection agreement. (2) To comply with this section, an insurance policy required in subsection (1) of this section must provide that: (a) If the provider fails to perform its obligations under the vehicle value protection agreement, the contractual liability insurer will pay all covered amounts that the provider is legally obligated to pay according to the agreement; and (b) The contract holder may file directly with the insurer for reimbursement if the payment due under the terms of the vehicle value protection agreement is not made by the provider within sixty days after proof of loss or trade-in of the covered vehicle has been filed in accordance with the terms of the agreement.
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