AR service contract provider bonds.
From $100. Enter your amount.
A provider selling extended service contracts in Arkansas registers with the Insurance Commissioner and must show financial responsibility under the Service Contracts Act. One of the three routes pairs a funded reserve with a security deposit placed in trust with the Commissioner — a surety bond worth at least $25,000. Premiums are 1% of the bond amount, $100 minimum; the application collects no credit information, and most applications approve instantly.
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Apply to filed in one sitting.
Registration season runs to October 1, so providers usually want this in hand quickly. Enter the amount, pay, and file with the Insurance Department:
Apply online
Your company details, your state of incorporation, the security-deposit amount your registration requires, and an effective date. That is the entire application.
Issued on the spot
The application returns your exact price at 1% of the bond amount, $100 minimum. Pay and the executed bond is generated on the spot. Six-figure deposits may draw a brief review first.
File with the Insurance Commissioner
Submit the executed bond with your annual provider registration and Certificate of Compliance. Wet-ink originals mailed whenever the Department insists on paper.
What it is and who needs it.
What the service contract bond actually secures
A service contract is the extended-protection agreement sold alongside consumer electronics, appliances, vehicles, homes, and home systems — coverage for repair or replacement beyond the manufacturer’s warranty. Arkansas regulates the companies that stand behind those agreements as providers under the Service Contracts Act, and every provider selling in the state files a registration with the Insurance Commissioner annually, on or before October 1, with a $200 fee at initial registration and each year after.
To assure the faithful performance of a provider’s obligations to its contract holders, the Act gives three routes. A provider can insure every contract under a reimbursement insurance policy written by an insurer with at least $15,000,000 in statutory capital and surplus; or maintain a funded reserve of not less than 40% of gross consideration received less claims paid and place a security deposit in trust with the Commissioner; or maintain a net worth of $100,000,000, on its own or under a parent guarantee. This bond is the second route’s deposit.
That deposit must be worth at least 5% of gross consideration received less claims paid on all unexpired Arkansas service contracts, and never less than $25,000 — a surety bond from an authorized surety satisfies it. Because the figure moves with your Arkansas book, recalculate it at each October registration and re-file at the new amount if you have grown. Enter the figure your registration requires; the premium is 1% of the bond amount, $100 minimum.
You need this bond if you are
One application, issued on the spot.
Submit the application with the deposit amount your registration requires — the executed bond is generated ready to file with the Insurance Commissioner. No credit section: this application does not collect credit information.
Start the application →Common questions.
Other Arkansas bonds.
October registration waiting on one filing.
Premiums from $100 at 1% of the bond amount. Enter your deposit figure and file with the Insurance Commissioner. Free until issued.