NY service contract provider bonds.
From $100. See your price in the app.
A registered service contract provider — the party obligated to perform under an extended warranty sold in New York — must demonstrate financial responsibility under Insurance Law Article 79. One of the three ways is a security deposit with the Superintendent of at least 5% of gross consideration received, subject to a $50,000 minimum, which may take the form of a surety bond. Premiums cost 1% of the bond amount, with a $100 minimum, and the application collects no credit information.
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Apply to filed in one sitting.
No long underwriting queue for the standard provider security bond — enter your amount, pay, and file with the Department. Here is the whole thing:
Apply online
Provider details, the deposit amount your registration requires, and the effective date. That is the entire application — no financials and no credit section.
Issued on the spot
Most provider security bonds issue right after purchase, priced at 1% of the bond amount with a $100 minimum. Larger books may get a brief underwriter look.
File with the Superintendent
Your executed bond and power of attorney arrive by email, ready to file with your Article 79 registration or renewal. Wet-ink originals mailed whenever the Department insists.
What it is and who needs it.
What the service contract provider bond actually covers
A service contract is the extended warranty a consumer buys on an appliance, a vehicle, an electronic device or a home system: a promise to repair, replace or maintain for a period after the manufacturer’s warranty runs out. New York brought them under the Insurance Law in Article 79, added by chapter 614 of the Laws of 1997 and effective 15 January 1998. The provider — the party contractually obligated to perform — must obtain approval of a registration from the Superintendent under § 7907, at a fee of $250 for each year or part-year the registration is in effect.
Registration is conditioned on assuring the faithful performance of your obligations to contract holders, and § 7903(c) gives three ways to do it. One: insure the performance of all your service contracts under a service contract reimbursement insurance policy. Two: maintain a funded reserve of at least 40% of gross consideration received and place a financial security deposit with the Superintendent of not less than 5% of gross consideration received, with a $50,000 minimum — which may be a surety bond issued by an authorised surety, securities, cash, or a letter of credit from a qualified United States financial institution. Three: maintain a net worth or stockholders’ equity of at least $100,000,000 and file financial statements with the Superintendent.
This bond is the second route’s deposit, and it is the one that keeps a growing provider’s capital free. Two things to plan for. The deposit is a percentage of your book, so it moves as gross consideration grows — re-file at the higher amount rather than letting the deposit fall short. And the net-worth route has a trapdoor: a provider relying on the $100,000,000 threshold whose net worth falls below it must comply with the insurance or reserve-and-deposit option within 45 days, which is not a lot of time to arrange security from scratch.
You need this bond if you are
One application, issued instantly.
These are the actual underwriting fields — provider details, the deposit amount your registration requires, the effective date. There is no credit section, because this application does not collect credit information.
Start the application →Common questions.
Other New York bonds.
Get the Article 79 registration through.
Premiums from $100, no credit section. Enter the deposit your registration requires and file with the Superintendent. Free until issued.