A recently filed bill seeking to amend Oklahoma’s Service Warranty Act would require insurers that offer contractual liability insurance coverage to service warranty providers to have an A.M. Best rating of B++ or better. Current law permits a service warranty provider to satisfy financial responsibility requirements by either maintaining a minimum unearned premium reserve and posting a surety bond with the Insurance Commissioner or insuring its service warranties, a.k.a. service contracts, through a contractual liability policy. However, the law does not currently establish minimum rating standards for such CLP insurers. The bill further proposes that the legislation take immediate effect once passed and approved by the Governor.
