OMVIC Practice Test

What statement is true about facilitating the sale of an extended warranty?

1. The facilitator is not responsible for claims

2. All claims responsibility falls to the insurance company

3. The facilitator can be held liable for unsettled claims

4. No documentation is required when facilitating

The correct answer is: The facilitator can be held liable for unsettled claims

When facilitating the sale of an extended warranty, the facilitator can potentially be held liable for any unsettled claims. This means that if there are any issues with the warranty and claims, the facilitator could be held responsible. Option A and B are incorrect because the facilitator does hold some level of responsibility in the warranty process. Option D is incorrect because documentation is typically required in order to validate the warranty and process any claims.