The Arkansas Service Contracts Act, A.C.A. 4-114-101 et seq., governs providers of service contracts sold in the state. Under A.C.A. 4-114-104(d), a provider assures faithful performance by (1) insuring all service contracts under a reimbursement insurance policy issued by an insurer with statutory capital and surplus of at least $15,000,000; (2) maintaining a funded reserve account of not less than forty percent (40%) of gross consideration received less claims paid on all unexpired contracts, together with a financial security deposit placed in trust with the Commissioner worth not less than five percent (5%) of gross consideration received less claims paid, but not less than twenty-five thousand dollars ($25,000), consisting of a surety bond issued by an authorized surety; or (3) maintaining a net worth of one hundred million dollars ($100,000,000). Arkansas Insurance Department Rule 36 (23 CAR § 36-103) requires each provider to file its registration with the Commissioner annually on or before October 1 and to pay a $200 fee at initial registration and every year thereafter. Confirm your required deposit amount with the Department before you file.

What the service contract bond actually secures

You need this bond if you are

Most service contract provider bonds issue right after purchase. Larger deposits can draw a brief underwriter review, after which your executed bond arrives ready to file with your annual provider registration.

1% of the bond amount, $100 minimum: the AR service contract provider bond placed in trust with the Insurance Commissioner under the Service Contracts Act.

Service Contract Provider Bond

Final premium can vary based on underwriting factors

How this works?

If you are a non profit select Corporation

All future bond correspondence and renewals will be sent to this address

Clear pricing.Instant issuance.