Oklahoma establishes vehicle service warranty association surety bond requirement

vehicle service

Oklahoma SB 1475 created the Service Warranty Act, which included an option for vehicle service warranty association bonds. Sen. Johnson and Rep. Jordan sponsored the bill. Gov. Mary Fallin approved the bill on April 25, 2012, and the law went into effect November 1, 2012.

“C. In order to assure the faithful performance of a provider’s obligations to its contract holders, each provider shall be responsible for complying with the requirements of paragraph 1, 2 or 3 of this subsection:”

“1. b. place in trust with the Commissioner a financial security deposit, having a value of not less than five percent (5% of the gross consideration received, less claims paid, on the sale of the service contract for all service contracts issued and in force, but not less than Twenty-five Thousand Dollars ($25,000.00), consisting of one of the following:

(1) a surety bond issued by an authorized surety,

(2) securities of the type eligible for deposit by authorized insurers in this state,

(3) cash,

(4) a letter of credit issued by a qualified financial institution, or

(5) another form of security prescribed by rule promulgated by the Commissioner;”

Click here to read SB 1475 in its entirety.

If you need a surety bond in Oklahoma or any other state, call 1 (800) 308-4358 Monday through Friday, 8 a.m. to 7 p.m. CST. Or, you can fill out an online contact form 24/7 and wait for an expert surety specialist to contact you within one business day.

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