California Code of Regulations › Title 16 - Professional and Vocational Regulations › Division 27 - Bureau of Electronic and Appliance Repair › Article 5.5 - Service Contractors › Section 2756 - Registration of Service Contractors

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
An application for registration as service contractor shall
				  be filed with the Bureau on an application form (Form 61A-2, Rev. 1/04)
				  prescribed and provided by the Bureau and accompanied by the prescribed fee. In
				  addition to the information required by Section
				  9830.5 of the Code, an application
				  shall also include the following:
(a)
				The service contractor's telephone number, mailing address, and the service
				contractor's business name, business address and business telephone number if
				different than the information relating to the individual service
				contractor.
(b) A service contract
				seller shall disclose the name and address of all service contract
				administrators which it uses to administer its service contracts.
(c) A service contract administrator shall
				disclose the name and address of the service contract sellers who sell or offer
				contracts administered by the administrator.
(d) A copy of the service contractor's
				proposed service contract form.
(e)
				The current value, based upon the full purchase price of the service contract
				paid by the service contract holder, of all service contracts in force, unless
				the service contractor has purchased or has arranged to have purchased on its
				behalf a service contract reimbursement insurance policy covering its service
				contracts or the service contracts which it administers.
(f) Proof of financial responsibility which
				complies with one of the following requirements:
(1) The most recent annual report on Form
				10-K required by the Securities and Exchange Commission which complies with the
				provisions of Section
				9855.2(a)(1) of
				the Code. A foreign corporation may submit a comparable regulatory filing which
				complies with the provisions of Section
				2757.3 and includes an audited
				statement.
(2) A copy of a service
				contract reimbursement insurance policy which complies with the provisions of
				Section 9855.4 of the Code.
(3) Copies of contracts which evidence that a
				service contract seller sells service contracts which are administered by a
				service contract administrator who has obtained a service contract
				reimbursement insurance policy covering the seller's service
				contracts.
(4) Evidence of a funded
				escrow account which complies with the provisions of Section
				2757.5. Such evidence shall
				disclose the name and address of the financial institution which holds the
				funded escrow account, the escrow account number, the escrow account
				instructions, and the most recent financial statement for the escrow account
				from the financial institution holding the escrow account. The applicant shall
				also grant the Director or his or her designee the authority to verify with the
				financial institution holding the escrow account the fund condition of the
				account.
(5) The most recent
				audited financial statement reflecting a net worth of not less than one hundred
				million dollars ($100,000,000) which complies with Section
				9855.2(a)(1)(B)
				of the Code. This audited financial statement and the registration renewal
				shall be filed annually with the Bureau.