Oklahoma Service Contract Provider Bond

Category: Uncategorized
Published: Nov 11, 2011
The combination of these bills would revise the regulatory scheme for home service contracts, requiring the service contract provider to meet certain financial requirements. This includes posting a surety bond or other security. The bond that needs to be posted cannot be for less than 5% of the gross premium received, less claims paid, on the sale of the service contract for all service contracts issued and in force in the state. The bond amount can not be less than $25,000 and a funded reserve account would be required in addition to the bond. Instead of posting the bond or having a funded reserve account the service contract provider could maintain a net worth or stockholder’s equity of $25 million, either on its own or together with its parent company

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