Oklahoma Insurance Service Warranty Association Bond

OklahomaInsurance Service Warranty Associations must obey a new law named SB 1428. Oklahoma state law now requires service warranty associations to acquire a surety bond equal to 5% of the gross premium pulled in on the sale of service warranties regarding all service contracts issued and in force, but not if the claims have been paid. The surety bond can not be any less than $25,000 regardless of the premium. Originally, SB 1428 did not impact the bonding industry. The bill was amended in a conference committee to incorporate the bond requirement spoken of above. SB 1428 became effective on July 1, 2009.