Hawaii service contract provider bonds.
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A company selling service contracts to Hawaii buyers must register with the Insurance Commissioner and prove financial responsibility under HRS 481X-4. One route is a funded reserve plus a security deposit in trust, and this bond can be that deposit. The $25,000 minimum rises with your Hawaii sales; a surety specialist quotes the premium.
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How much does a Hawaii service contract provider bond cost?
It is underwritten: the premium is quoted from the bond amount and your financial picture, so there is no flat price to show.
From Form FRS to a registered provider.
Hawaii requires a service contract provider to register before conducting business in the State, and the registration must include proof that you meet HRS 481X-4. Here is the whole process with a bond as your deposit:
Request a quote
Your business details, an effective date, and the bond amount — the larger of the statutory minimum or five percent of gross consideration received less claims paid on your in-force Hawaii contracts. There is no credit section in the application.
A specialist quotes it
A surety specialist confirms the bond names the Insurance Commissioner of the State of Hawaii as obligee and is written to your figure, then returns your exact premium. Accept the quote and pay, and the bond issues.
Upload with Form FRS
Your executed bond and power of attorney arrive by email. The Insurance Division requires Form DP for SCP, Form FRS and the supporting financial documents in NIPR’s Attachments Warehouse within 7 days of submitting the registration application, or the application may be treated as rejected. Wet-ink original mailed on request.
What it is and who needs it.
What the service contract provider bond actually guarantees
Hawaii regulates service contracts — extended warranties, vehicle service plans, tire-and-wheel, windshield, key-replacement and paintless-dent contracts sold for a separate price — under HRS Chapter 481X. The provider is the company contractually obligated to the contract holder, and under HRS 481X-3 it must register with the Insurance Commissioner before conducting business in the State, update that registration annually, and include proof that it complies with the financial responsibility rules of HRS 481X-4.
Section 481X-4 gives a provider three routes, and it need satisfy only one. It can insure every contract under a contractual liability insurance policy. It can keep a funded reserve account of at least forty percent of gross consideration received, less claims paid, and place a financial security deposit in trust with the Commissioner. Or the provider, or a parent that guarantees its obligations, can hold a net worth of at least one hundred million dollars. The bond belongs to the second route: the deposit may be a surety bond issued by an authorized surety, securities, cash, or a letter of credit. A bonded provider still keeps the forty percent reserve — the bond never stands alone.
The deposit is sized to your Hawaii book: the larger of $25,000 or five percent of gross consideration received, less claims paid, on in-force contracts. Most smaller sellers file a $25,000 minimum bond; a larger book shows its math on the Form FRS worksheet. The Insurance Commissioner of the State of Hawaii is the obligee, and contract holders are the people it protects. The bond is not insurance for you: if the surety pays on it, you repay the surety. It stays in force while your Hawaii contracts are, alongside the registration you renew by July 31 each year.
You need this bond if you’re
Claims, renewal, filing, and what sets the price.
If a claim is made
A claim comes from the party the bond protects, the obligee named on the form, when the duty the bond guarantees is not met.
The surety investigates and pays a valid claim, up to the bond amount. You then repay the surety: a surety bond is a guarantee of your performance, not insurance for you.
Renewal and term
Term and renewal are set in the underwriter's quote.
Keep the bond in force for as long as the obligation behind it runs.
How to file it
Upload with Form FRS. Your executed bond and power of attorney arrive by email. The Insurance Division requires Form DP for SCP, Form FRS and the supporting financial documents in NIPR’s Attachments Warehouse within 7 days of submitting the registration application, or the application may be treated as rejected. Wet-ink original mailed on request.
What sets the price
This bond is underwritten: the premium is quoted from the bond amount and your financial picture, so there is no flat price to show.
One short form to a quote request.
These are the actual issuing fields — the bond amount, an effective date, the entity type, the business address, and the owner and contact details. No credit section, because this application collects no credit information. Submit once and a specialist returns your quote, usually within one business day. Free until issued.
Start the application →Common questions.
Other Hawaii bonds.
Requirements checked on the carrier’s application, . Page updated .
Post the deposit and register in Hawaii.
Send the deposit figure from your Form FRS, and a specialist quotes the bond — usually within one business day. Free until issued.