Circuit City's FAQ suggests there will be no problems:

"We have made no changes to our Circuit City Advantage Protection Plans. In fact, our Circuit City Advantage Protection Plans are insured by third-party financial institutions, so consumers can be confident their plans will be in effect based on the terms of the contracts."

That is reassuring, but it still leaves some uncertainty for consumers. If Circuit City were to go belly up, how would the insurers honor the extended warranty?

Circuit City told me that one of warranty insurers is GE Assurant. GE's Warranty Management Group . I am trying to confirm whether Circuit City extended warranties are now covered by Assurant, and what it would mean for consumers holding them in the event of Circuit City shutting its doors for good.

Anecdotal evidence suggests getting some insurers to honor warranties from shuttered retailers could be difficult. Web complaint sites and other forums are already filled with tales of people who felt they were burned by extended warranties, even when dealing directly with retailers. But the complexities seem to be multiplied when dealing with an insured warranty issued by a retailer that's no longer in business. Garrick Hileman, the Industry Standard's , recently had to deal with GE Assurant when attempting to have a tweeter in a high-end speaker repaired. He had purchased the speakers in 2002 at Good Guys, a California electronics retailer . His Good Guys' 10-year extended warranty was covered by GE Assurant, but he says the firm gave him the runaround when he first made contact.