Yes, retailers assume the risk to honor the coverage they are providing. Since it is not a cash-out policy, your exposure is greatly reduced.
Many states allow for the sale of extended warranty contracts and service plans. There may likely be needed policy modifications for your company to offer its own plan using Assurance Holdings’ software and framework, to ensure it is compliant with applicable state law.
Assurance Holdings assumes no liability, nor has any liability regarding the compliance of any third party or company offering their own plan using Assurance Holdings’ software and framework. It is solely up to any prospective customer to work with the own legal counsel and state regulatory officials to do their own due diligence to ensure their ultimate offering is fully compliant.
It is cleanest to stop selling new policies on the last day of a month (i.e. December 31st), and not allow any previous policies to auto-renew past that date. Your total liability obligation would terminate one year from the date chosen. If you wish to wind the program down in less than 12 months, you can return portions of policy premium to your customers.
Assurance is the only product that exists that gives retailers the recipe, framework, and hassle-free management to launch their own extended warranty division. The next closest options for jewelers to receive an ultra-modest referral from insurance companies, and the promise to execute discounted repairs for them. These programs make insurance companies richer and the jeweler work harder.