"if the "warranty" company goes out of business the VW selling dealer would be held accountable since they sold you the warranty."

Thank you, Mick, for your prompt and enlightening reply. I didn't realize the dealer would be obligated to honor the warranty if the warranty provider
folded. Is that provision normally written into the contract, or is it stipulated by federal law?

Paul,,, excellent follow up Q,,, after all my years in the business I also did not realize the dealer would be obligated to honor the warranty

It will be interesting to see if Mick can back up his statement by answering your Q,,, or if he is just another fly by night whom choose not to answer.