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.
Eric is the Webmaster of JW Surety Bonds. With years of experience in the surety industry, he is also a contributing author to the surety bond blog.