1. A. No person in this state shall act as a service warranty association unless licensed by the Insurance Commissioner.
2. B. A service warranty association shall pay to the Insurance Department a license fee of Four Hundred Dollars ($400.00) for such license for each year, or part thereof, the license is in force. All license fees received pursuant to this subsection shall be paid into the State Treasury to the credit of the Insurance Commissioner Revolving Fund and shall be used for the implementation of the Service Warranty Insurance Act.

3. C. Each business entity that offers to sell service warranty contracts shall be registered by the Insurance Department and shall meet the following criteria:

   1. 1. A registration issued to a business entity that offers to sell service warranty contracts shall encompass each office, branch office, or place of business making use of the entity's business name in order to offer, solicit, and sell service warranty contracts pursuant to this subsection;
   2. 2. The registration application must list the name, address, and phone number for each office, branch office, or place of business that is to be covered by the registration, and the entity shall pay the registration fee for each office, branch office, or place of business where the entity will sell service warranty contracts;
   3. 3. The registered entity shall notify the Department of the name, address, and phone number of any new location that is to be covered by the registration before the new office, branch office, or place of business engages in the sale of service warranty contracts pursuant to this subsection;
   4. 4. The registered entity shall notify the Department within thirty (30) days after closing or terminating an office, branch office, or place of business. Upon receipt of the notice, the department shall delete the office, branch office, or place of business from the entity’s registration; and
   5. 5. A business entity shall pay to the Department a business entity registration fee of Four Hundred Dollars ($400.00) for each registration separate and in addition to a service warranty association license fee. All registration fees received pursuant to this subsection shall be paid into the State Treasury to the credit of the Insurance Commissioner Revolving Fund and shall be used for the implementation of the Service Warranty Insurance Act.
4. D. An insurer, while authorized to transact property or casualty insurance in this state, may also transact a service warranty business without additional qualifications or licensure as required by the Service Warranty Insurance Act, but shall be otherwise subject to the provisions of the Service Warranty Insurance Act.
5. E. A service warranty association may appoint an administrator or other designee to be responsible for any or all of the administration of service contracts and compliance with this act.
6. F. An agreement which provides specified scheduled maintenance services over a stated period of time does not constitute insurance or a service warranty.

Added by Laws 1993, HB 1001, c. 108, § 4, eff. September 1, 1993; Amended by Laws 2008, SB 1428, c. 353, § 18, eff. July 1, 2009 (superseded document available).