Oklahoma Service Contract Bond

Oklahoma State has enacted a new bill concerning the surety industry. The new bill is named SB 780 and requires the service contract provider to obtain a surety bond or other security. The amount of the bond must be at least 5% of the gross premium received on the sale of the service contract for all contracts supplied and in force within Oklahoma and can also be no less than $25,000. Also required is a funded reserve account in addition to the bond. SB 780 will be effective November 1, 2011.