What is a Service Contract Administrator License
Several states require a license or some form of registration to act as an administrator for service contracts. This applies if an entity other than the Service Contract Obligor (Provider) is administering claims. This varies by product type (auto versus consumer goods, for example).
For service contracts related to consumer goods, this process ranges from having the obligor submit an acknowledgment form that the administrator understands its obligations under the law ( New York Example ) to a full license ( California Example ).
The process may include a fee to the state, a copy of the terms and conditions from the obligor, a copy of the Service Contract Reimbursement Insurance Policy that backs the service contracts, a list of providers supported, registered agent information, and a completed application. The application includes company information and often includes shareholder information.
The overall process is easy to navigate with the right help. Many great firms exist to assist with the process, and often the obligor will help as well.