By Steven Barge-Siever, Esq. The obligor is the company legally responsible for performing the warranty or service contract. The administrator operates the program by handling functions such as contract enrollment, customer service, claim intake, adjudication, repair coordination, cancellations, refunds, and reporting. The obligor and administrator may be the same company, but they do not have to be. The critical distinction is this: The administrator manages the obligation.

By Steven Barge-Siever, Esq. New Jersey does not usually lead with the term “CLIP” when discussing service contract financial backing. Instead, one of the most important phrases is: Reimbursement Insurance Policy. That phrase matters because it connects service contract obligations, warranty-style customer promises, financial responsibility, and the broader CLIP conversation. In plain English, New Jersey is focused on a practical question: If a company sells a service contrac