A company or organization that collects the insurance premiums that underwrite (or support) financially the extended service contract or warranty. These warranty premiums are used to pay for warranty claims handled by the warranty administrator, however initiated by the consumer or repair facility.
Often times this warranty company is referenced as the warranty underwriter. All reputable warranty underwriter's are registered with A.M. Best Company for an independent rating of financial stability. Make sure to review and determine that the rating is A or above when making a decision to purchase a product underwritten by the warranty company indicated to be the underwriter in the service contract or car warranty terms and conditions.
