New Mexico service contract provider bonds.
From $500.
A service contract provider must register with the New Mexico Office of Superintendent of Insurance and post financial security under NMSA 1978, Section 59A-58-6: $50,000 for most providers, or $100,000 for motor vehicle and residential-systems contracts. Premiums cost 1% of the bond amount.
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How much does a New Mexico service contract provider bond cost?
1% of the bond amount, from $500 at the $50,000 minimum. Enter your amount in the calculator for the exact price.
Three steps. One sitting.
The security is the slowest-looking box on the OSI registration checklist and the fastest one to actually clear. Here is the entire process:
Apply online
Entity type, provider address, contact and owner names, the amount your registration requires, and an effective date. No financials, no credit check up to $10,000, no follow-up scavenger hunt.
Pay & e-sign
Provider security bonds at these amounts issue right after purchase for the great majority of applicants — many finish the application and hold the bond in the same sitting.
File with OSI
Send the executed bond to the Company Licensing Bureau with your registration application, the $500 filing and registration fee, and the name, address and telephone number of each administrator you intend to contract with.
What it is and who needs it.
What the provider security actually guarantees
A service contract is the extended warranty sitting next to the product: a written agreement, for a separate charge and over a set period, to repair, replace, maintain or indemnify against the cost of operational failure. The company obligated to perform under it is the provider, and New Mexico regulates providers through the Insurance Code even though a service contract is deliberately not insurance.
The security is the consumer's backstop. A provider collects for coverage it will deliver months or years later, so Section 59A-58-6 makes it post $50,000 — or $100,000 where the contract covers a motor vehicle or the mechanical, plumbing and electrical systems and appliances sold in connection with the sale of a residential dwelling — before it may register. A contract holder harmed by a provider that fails to perform or refuses a refund can claim against it, up to the full amount.
A bond is one of four permitted forms, and it is by far the cheapest. Cash, securities and a clean irrevocable letter of credit all freeze real capital or bank lines at full face value; a surety bond costs a one-time premium priced at 1% of the amount, and leaves your balance sheet alone. It is not insurance for the provider — if the surety pays a claim, you repay the surety. Registration renews annually on its original issue date, so the security has to stay continuously in force.
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
The premium covers a one-year term from the effective date you choose.
Renew before the expiry date to keep the bond in force: the license, permit or contract it backs expects continuous coverage.
How to file it
File with OSI. Send the executed bond to the Company Licensing Bureau with your registration application, the $500 filing and registration fee, and the name, address and telephone number of each administrator you intend to contract with.
What sets the price
The premium is 1% of the bond amount, $100 minimum: the amount the obligee sets moves the price, not your business profile.
No credit check up to $10,000. Above that, the carrier may run a soft pull, which never affects your score.
Where a check runs, it decides approval; the rate is the same for everyone approved.
One application, issued instantly.
These are the actual issuing fields. No credit check up to $10,000.
Start the application →Common questions.
Other New Mexico bonds.
Price and requirements checked on the carrier’s application, . Page updated .
Register with OSI this week.
Enter $50,000 or $100,000, pay, and file the bond with your registration application and the $500 fee. Free until issued.