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Service Contract Providers Page

Finance Division

Kimberly Johnson, kimberly.johnson@arkansas.gov
Insurance Examiner
Arkansas Insurance Department
1200 West Third Street
Little Rock, AR 72201-1904
501-371-2680, fax 501-371-2747

Act 656. 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.

Frequently Asked Questions

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.

Registration Requirements

(1) Original Provider Registration Form

(2) Renewal Provider Registration Form

(3) Provider Bond Form

(4) Rule 91

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