Posted by cheyenne on January 12, 02 at 17:32:20:
In Reply to: Warranty vs Insurance definitions opinion posted by Ben on January 12, 02 at 12:13:03:
Primary difference (legal) between warranties and insurance policies is how they are administered. Warranties are covered under federal law by the Magnuson-Moss Warranty Act of 1975 and under state law by consumer protection laws generally under the province of the state Attorney General. To protect your interest under warranties, lawsuits are usually filed when the dispute cannot be resolved. On the other hand, insurance policies are under the auspices of your state Insurance Commmissioner and can be resolved without legal action because an insurance policy is a contract and the Insurance Commissioner has the legal authority for enforcement.