DC service contract provider bonds.
From $100. Enter your amount.
A company that issues extended warranties or service contracts in the District registers with the Department of Insurance, Securities and Banking (DISB) and must satisfy one of three financial-responsibility routes under D.C. Code § 31-2351.03(e). The bond route pairs a funded reserve with a security deposit placed in trust with the Commissioner — not less than 5% of gross consideration received less claims paid, and never less than $25,000. The premium is 1% of the bond amount, $100 minimum, and the application collects no credit information.
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Apply to filed in one sitting.
The bond is the fast half of the DISB filing. Enter your amount, pay, and send it to the Commissioner. Here is the whole thing:
Apply online
Your company details, the deposit amount your book of business requires, and an effective date. That is the entire application.
Issued
The application collects no credit information, and most applications approve instantly. Larger deposits on a big in-force book may draw a brief review before the bond is released.
File with DISB
Send the executed bond on the department’s Service Contract Provider Surety Bond form with your registration or annual renewal. Wet-ink originals mailed on request.
What it is and who needs it.
What the service contract bond actually guarantees
DISB regulates the companies that sell and are responsible for administering service contracts in the District — vehicle service contracts, appliance and electronics extended warranties, home service agreements — under the Service Contract Regulation Act of 2018, codified at D.C. Code § 31-2351.01 et seq. A provider registers with the Commissioner, designates a person in the District for service of process, and pays a $200 fee on initial registration and every year after.
To assure the faithful performance of its obligations to contract holders, § 31-2351.03(e) makes a provider pick one of three routes: insure every contract under a reimbursement insurance policy from a qualifying insurer; maintain a funded reserve of at least 40% of gross consideration received less claims paid and place a financial security deposit in trust with the Commissioner; or show $100 million in net worth or stockholders’ equity. This bond is the middle route’s deposit — one of the permitted forms alongside eligible securities, cash, or a letter of credit.
What it stands behind is spelled out on the department’s own bond form: the bond runs to the District of Columbia for the benefit of any service contract holder who suffers loss from the provider’s failure to faithfully perform its obligations under service contracts issued in the District. It stays in force as to future acts until the Commissioner releases it or the surety gives 30 days’ written notice to the Commissioner — and cancellation does not wipe out liability that accrued first. It is not insurance for the provider: if the surety pays a contract holder, the provider repays the surety.
You need this bond if you are
One application, issued instantly.
These are the actual issuing fields — your company details, the deposit amount your filing requires, and an effective date. There is no credit section, because this application collects no credit information.
Start the application →Common questions.
Other District of Columbia bonds.
File the DISB deposit without tying up cash.
From $100, no credit section, and the bond issues as soon as you pay. Enter your required amount and file with the Commissioner today. Free until issued.