What if a KeyGuard/KGI member goes out of business leaving unpaid service contracts in the field. How does this affect my business?
A. The KGI Board of Directors and your Administrator, monitor the success of each dealers business. In addition, KGI requires all contract sales to be sent and paid for by the 15th, following the close of the previous month. These protective measures are in place to minimize this possible event. Yet should a dealer leave the group or close his doors, claims on non remitted contracts will first be paid from the dealers existing reserve fund. Secondly, as stated in the dealer agreement: “Dealer and Dealer principal shall be corporately and personally liable for any reserve deficiency due to fraud or non-payment of premium on issued service contracts”. As a final protective umbrella, KGI has entered into contract with the insurer to provide 100% indemnification should reserves prove inadequate to fund all claims. The importance of this contractual liability policy can’t be underestimated. It means, despite the safety measures built into the program, should the KGI warranty program fail, p
