NM service contract provider bonds.
From $100. Enter your amount.
Before a provider may issue, sell or offer a service contract in New Mexico it has to register with the Office of Superintendent of Insurance and post financial security under NMSA 1978, Section 59A-58-6 — $50,000 for most providers, $100,000 where the contract covers a motor vehicle or the mechanical, plumbing and electrical systems and appliances sold with a residential dwelling. Premiums cost 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 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 section, 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, $100 minimum, 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
One application, issued instantly.
These are the actual issuing fields — no credit section, because this application doesn't collect credit information.
Start the application →Common questions.
Other New Mexico bonds.
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.