Arkansas Insurance Department

Finance Home

Service Contract Providers

Email: kimberly.johnson@arkansas.gov

Phone:  (501) 371-2680; Fax: (501) 371-2747

Registration Requirements:

  1. Original Provider Registration Form
  2. Renewal Provider Registration Form
  3. Provider Bond Form
  4. Rule 91
  5. Ark. Code 4-114-102

Frequently Asked Questions:

  • What is a Service Contract?  A "Service Contract," is sometimes referred to as an extended service plan or extended warranty, gives purchasers of consumer electronics, appliances, motor vehicles, homes and home systems, the option to protect their products and investments beyond the terms provided by the manufacturer or seller. Service Contracts often provide benefits not otherwise available in a manufacturer's or seller's warranty. Service Contracts offer flexible benefits that can include product repairs, complete product replacement, technical support, and emergency repairs and service. In addition to product and purchase protection, Service Contracts provide consumers with convenience, time savings, and peace of mind.
  • How does a Service Contract differ from a warranty? Unlike a Service Contract for which a consumer pays a separate charge, a manufacturer's warranty is included in the purchase price of a product. You don't have to decide whether to "buy" it or not - it simply comes with your product. Although Service Contracts are sold by manufacturers, as well as other kinds of companies, they differ from a manufacturer's warranty. Manufacturers' warranties generally have limited product protection and are effective for a limited period of time, some as short as 90 days, depending on the type of product covered. Service Contracts are designed to provide protection after a manufacturer's warranty expires but they can also overlap by providing additional benefits generally not included in a manufacturer's warranty.
  • What is the Service Contract Industry Council? The Service Contract Industry Council (SCIC) is a national non-profit trade association that works with lawmakers across the country to develop fair and uniform regulation to protect consumers, and is an advocate for the regulation of the Service Contract industry.

Ark. Code 4-114-102  An Act To Establish A Legal Framework For The Regulation Of Service Contracts; And For Other Purposes.  This ACT will become effective and apply to all service contracts issued on or after October 1, 2007.

A Service Contract provider can be an individual, a partnership, a corporation, an incorporated or unincorporated association, a joint stock company, a reciprocal, a syndicate, or any similar entity or combination of entities acting in concert.

This ACT does not apply to the following:

  1. Manufacturer Warranties: Unlike a Service Contract for which a consumer pays a separate charge, a manufacturer's warranty is included in the purchase price of a product. You don't have to decide whether to "buy" it or not - it simply comes with your product. Manufacturers' warranties generally have limited product protection and are effective for a limited period of time, some as short as 90 days, depending on the type of product covered.
  2. Scheduled Maintenance Only  agreements
  3. Commercial Transactions
  4. A person or entity licensed by the Arkansas Public Service Commission or FCC with respect to warranties, service contracts or maintenance agreements.
  5. Service Contracts sold to persons other than Consumers.
  6. Motor Vehicle Service Contracts as defined in ACA §4-90-501 et seq.
  7. Mechanical Breakdown Insurance Policy: a contract between a consumer and an insurance company.

Note:   Manufacturer’s service contracts on the manufacturer’s products are subject only to ACA 4-112-106(a), 4-112-106(d)-(g), 4-112-107, and 4-112-111, and therefore are not required to be registered, but must comply with the referenced sections of the law.

Unless exempt, a provider of a service contract in Arkansas issued on or after October 1, 2007 is required to register with the Arkansas Insurance Department.  For information on service contracts, see Arkansas Code Annotated §§ 4-112-101, et seq. and Arkansas Insurance Department Rule 91.

2009 Legislative Changes to the Service Contract Act- There was a codification error in the Service Contracts Act, Ark. Code Ann. § 4-114-101, et seq., which was en­acted in the 2007 session. In its erroneous 2007 form, the Act allows a service contract provider to meet the financial requirements for doing business in Arkan­sas by only placing a minimum of $25,000 on deposit with the Department. How­ever, that allows providers to be less financially secure than was intended. There­fore, this 2009 Act restores the Service Contract Act to correctly set forth the three ways to comply with the Act’s applicable financial requirements.