Service Contract Providers
Military Service Members, Veterans, and Spouses - For more information about obtaining a TDLR license or renewing a TDLR license that expired while serving on active duty, please go to the Military Outreach home page.
A Service Contract Provider provides extended warranties to consumers for a specified period of time and for an additional cost beyond the price of the product.
The Service Contract Providers law has been expanded to include providers who sell or issue service contracts that ONLY provide identity recovery services. The Identity Recovery Service Contract law was repealed in 2013, and identity recovery service contracts were added as a new type of product under the Service Contract Provider law. The Service Contract Providers forms and Frequently Asked Questions have been updated to reflect these changes. The amended statute will be posted soon.
Service contract provider (SCP) applicants must provide financial security using one of the following three options:
- Reimbursement insurance policy with Texas endorsement form
- $100 million net worth of SCP applicant or its parent company
- Funded reserve account, security deposit and audited financial reports
- Funded Reserve Account - Maintain an amount of at least 40% of gross consideration the provider received from the sale of all service contracts issued and outstanding in Texas minus any claims paid
- Security Deposit - Maintain a minimum amount of $250,000. There are 3 acceptable forms for the security deposit: Letter of Credit (LOC), Certificate of Deposit (CD), and cash deposit with TDLR. No surety bonds or securities accepted.
- Audited Financial Reports - Submit a copy of provider’s financial statements that must be prepared in accordance with generally accepted accounting principles, be without qualification as to the going concern status of the provider, and be audited by an independent certified public account.
TDLR is now accepting online payment for administrative penalties.
For more information about the Service Contract Providers program, e-mail TDLR at CS.Service.Contract.Providers@tdlr.texas.gov.